The continued rise of cryptocurrency is causing a global drain on semiconductor chips. There’s a massive shortage of chips across the globe in 2020, and the problem continues to persist as it affects the cryptocurrency market.

Chip shortages are being spurred by the pandemic and the resulting increase in PC sales. Restrictions and lockdowns have increased the need for computing power for remote video conferences and collaboration software, with more industries than ever draining the global semiconductor supply.

Multiple Factors Have Created a Lack of Chips

Cryptocurrency miners had been purchasing the fastest and most powerful GPUs available, a lot of which come from Chinese companies. Sanctions between the US and China and high tensions between these two countries are causing chips to be stockpiled by Chinese companies. Manufacturing equipment necessary to make the chips is being hoarded in China as well, which has resulted in an increased drain on the available supply.

Conductors are used in so many different products these days, and vice president of Forrester, Glenn O’Donnell, predicts that the shortage will continue for a long time to come. He says that anything with a battery or a plug probably has lots of semiconductor chips.

Cryptocurrency miners are having to wait for weeks and even months longer than initial projections for their semiconductor orders. They are also having to pay more and use different vendors to get the GPUs and semiconductors they need.

Extensive Bitcoin Mining Increases Chip Prices

The price of semiconductors is going up due to the shortage of available semiconductors and the increase demand for them. A lot of that increased demand is being driven by cryptocurrency, particularly since the recent boom that Bitcoin, Dogecoin and other virtual assets have experienced.

The last time Bitcoin surged, demand from crypto minors accounted for 10% of all sales for the world’s third largest chipmaker, TSMC.

In 2020, Bitcoin was valued at $10,723, while it currently sits at $56,076. Some analysts predict that by 2030, Bitcoin could be worth $100,000.