Cryptocurrencies Are Cooling, Just Ask The World’s Biggest Contract Chipmaker

The world’s biggest contract chipmaker recently informed investors that sales were slowing due to “falling demand” for the microprocessors that specialize in blockchain mining. Almost two weeks ago, Taiwan Semiconductor Manufacturing Co. (TSMC) had to lower this year’s sales growth forecast to 6.5% from earlier estimates of between 7% and 9%.

“To be sure, slumping prices of cryptocurrencies aren’t the only reason for the slowdown. Orders for mining processors may have “leveled off” as buyers wait for an upgrade in chips from a 16-nanometer to a 7-nanometer process, says Shone Anstey, executive chairman and cofounder of BlockChain Intelligence Group, a Vancouver-based cryptocurrency tracking firm. Chips made through a 7-nanometer process would offer more power per machine, with more energy efficiency. Producers may find this scheme “profitable,” Anstey says for this post.”

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