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The cryptocurrencies are cooling down, just ask the world's largest contract chip maker

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An employee inspects machines for bitcoin and lightcoin production at the "Kriptounivers" mining center (CryptoUniverse) during a presentation of the largest crypt currency center in Russia in Kirishi on 20 August 2018. (Photo: Olga Maltseva / AFP / Getty Images )

The world's largest contract chip manufacturer recently & nbsp;informed investors& nbsp; sales were slowing due to "falling demand" for microprocessors that & nbsp; specialize in & nbsp; mining blockchain. Almost two weeks ago, & nbsp;Taiwan Semiconductor Manufacturing Co.& nbsp; (TSMC) had to reduce this year's sales growth forecast to 6.5% from previous estimates between 7% and 9%.

"Chips orders are falling," says Zhang Jian, founder of Fcoin / F1, a cryptocurrency exchange from China. "This is a clear reflection of the continuing bear market within the cryptocurrency space.It is no secret that mining cryptocurrency has accelerated progress and sales of computing power, but this pace slowed significantly in the second quarter and in the third quarter ".

The cryptocurrencies are losing part of their magic. The proxy & nbsp; for the legal tender it had once enchanted investors while generating countless fintech startups that are building blockchain technology-based services. But bitcoin prices have plummeted by 60% this year, making it more difficult for miners to make profits using their& nbsp; powerful computer systems to generate and verify cryptocurrency units.

TSMC produces & nbsp;high performance computing chips for customers like AMD, which also showed signs of slowing down. This news in the sector& nbsp; it has come to the point of saying that AMD has seen a "huge" decline in the second quarter business from encryption chips and that the company has not predicted a rebound in the third. TSMC refused to discuss cryptocurrency mining chips for this report.

More on Forbes: & nbsp;Will blockchain-based decentralization allow more privacy for users?

Interested in cryptocurrency mining activity has gradually reduced this year, partly because Bitcoin prices have plummeted. This comment& nbsp; provides a bearish market until the end of the year. Even the extraction activities have become increasingly competitive and reward the most complex formulas. When the market collapses, the income of a miner's equipment is "very much" and "even becomes unprofitable," says Intelligent Investing in this & nbsp;July comment.

"A fall in demand for cryptocurrency extraction equipment has to do with the high purchase cost," says Peng & nbsp; Mao-jung, & nbsp; an international strategy center with the Taiwanese government's industrial technology research institute. "The lack of interest in mining equipment also has to do with the implosion of encrypted prices."

Only a leveling of the application?

To be sure, the collapse of the cryptocurrency prices is not the only reason for the slowdown. Shine Anstey, executive chairman and co-founder of BlockChain Intelligence Group, a Vancouver-based Vancouver cryptocurrency, said that Shore Anstey, executive president and co-founder of BlockChain Intelligence Group, has ordered mining operators to "level off" while buyers wait an upgrade in 16-nanometer 7-nanometer chips. stop. The chips made through a 7-nanometer process would offer more power per machine, with greater energy efficiency. The producers could find this "profitable" scheme, says Anstey for this post.

Mark Liu, president of Taiwan Semiconductor Manufacturing Co., speaks during a forum at Semicon Taiwan Future Starts at the beginning of September 2018. (Photo: Billy H.C. Kwok / Bloomberg)

"The indicators are there that the market is slowing down in preparation for this new family of mining chips to get into production," he adds. "The increased power of these new mining chips could push smaller mining operations to pool resources to scale."

Today the biggest miners have an advantage in generating new crytocurrencies units because of their relative computing power.

Blockchain technology is expected to grow anyway, as financial institutions and stock exchanges use it more often. "The key factor driving the growth of this market is the ability to share the ledger and the continuously reconciled database," Peng says.

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An employee inspects machines for bitcoin and lightcoin production at the "Kriptounivers" mining center (CryptoUniverse) during a presentation of the largest crypt currency center in Russia in Kirishi on 20 August 2018. (Photo: Olga Maltseva / AFP / Getty Images )

The world's largest contract chipmaker recently informed investors that sales were slowing down due to the "shrinking demand" for microprocessors specializing in mining blockchain. Nearly two weeks ago, Taiwan Semiconductor Manufacturing Co. (TSMC) had to lower this year's sales growth forecast to 6.5% from previous estimates between 7% and 9%.

"Chips orders are falling," says Zhang Jian, founder of Fcoin / F1, a cryptocurrency exchange from China. "This is a clear reflection of the continuing bear market within the cryptocurrency space.It is no secret that mining cryptocurrency has accelerated progress and sales of computing power, but this pace slowed significantly in the second quarter and in the third quarter ".

The cryptocurrencies are losing part of their magic. The proxy for legal tender once had fascinated investors while generating countless fintech startups that are building blockchain-based services. But bitcoin prices have plummeted by 60% this year, making it more difficult for miners to make profits using their powerful computer systems to generate and verify cryptocurrency units.

TSMC produces high performance computing chips for customers like AMD, which also showed signs of slowing down. This report on industry news has come to the point of saying that AMD has seen a "huge" decline in the second quarter business from encryption chips and that the company has not predicted a rebound in the third. TSMC refused to discuss cryptocurrency mining chips for this report.

More on Forbes: Will blockchain-based decentralization allow more privacy for users?

Interest in cryptocurrency mining has declined considerably this year, partly because Bitcoin prices have plummeted. This comment provides for a bearish market until the end of the year. Mining activities have also become increasingly competitive and the formulas of reward more complex. When the market collapses, the income from a miner's equipment is "very much" and "even becomes unprofitable," says Intelligent Investing in this July comment.

"The fall in demand for cryptocurrency extraction equipment has to do with the high purchase cost," says Peng Mao-jung, manager of an international strategy center at the Institute of industrial technological research of the Taiwanese government. "The lack of interest in mining equipment also has to do with the implosion of encrypted prices".

Only a leveling of the application?

To be sure, the collapse of the cryptocurrency prices is not the only reason for the slowdown. Shine Anstey, executive chairman and co-founder of BlockChain Intelligence Group, a Vancouver cryptocurrency monitoring company, announced that orders for mining processors could be "smoothed out" while buyers await chip upgrades from a 16 nanometer process at 7 nanometers. . The chips made with a 7-nanometer process would offer more power per machine, with greater energy efficiency. The producers could find this "profitable" scheme, says Anstey for this post.

Mark Liu, president of Taiwan Semiconductor Manufacturing Co., speaks during a forum at Semicon Taiwan Future Starts at the beginning of September 2018. (Photo: Billy H.C. Kwok / Bloomberg)

"The indicators are there that the market is slowing down in preparation for this new family of mining chips to get into production," he adds. "The increased power of these new mining chips could push small mining operations to pool resources to scale."

Today the biggest miners have an advantage in generating new crytocurrencies units because of their relative computing power.

Blockchain technology is expected to grow anyway, as financial institutions and stock exchanges use it more often. "The key factor driving the growth of this market is the ability to share the ledger and the continuously reconciled database," says Peng.

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