Intel and Block support for miners could push Bitcoin higher

Posted: 28 January 2022 9:00 am
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Both companies recently announced they will enter the Bitcoin mining market by selling mining-specific hardware.

Intel (INTC), one of the world's largest microchip makers, plans to unveil a Bitcoin (BTC) mining chip at a press conference on 23 February. Adding a new chip to its lineup can benefit the company by introducing a new revenue stream, and the Bitcoin market because it will give more cost-efficient tools to Bitcoin miners.

It's also another sign that some crypto is going mainstream — which is good for Bitcoin owners.

"Bonanza Mine" chip

The new chip is described as an ultra-low-voltage energy-efficient mining ASIC. ASIC stands for application-specific integrated circuit, meaning a chip designed for one purpose only — Bitcoin mining. The Bonanza Mine would lower energy consumption by 15% compared to other ASICs on the market. This, in turn, should lower the mining cost of Bitcoin and increase potential rewards value for miners.

On top of that, Intel plans to launch a lineup of graphics processing units (GPUs) called Arc Alchemist, this year. These chips are designed for gaming, but they can be adapted for Ethereum mining or for mining other cryptocurrencies. This will make Intel a direct competitor of Nvidia (NVDA) and Advanced Micro Devices (AMD) whose graphics cards are already used for mining.

Intel already has customers for its new chip

Bitcoin mining company Griid Infrastructure, has already signed a supply agreement with Intel to potentially buy the new ASIC miners, according to an SEC filing.

Griid is going public by merging with a SPAC, Adit EdTech Acquisition Corp. Once public, the company will go under the name GRIID Infrastructure Inc. and list on the NYSE under the ticker symbol GRDI.

Block also enters the Bitcoin mining market

Payment company Block, formerly known as Square, is also "officially building an open Bitcoin mining system," according to a tweet by Jack Dorsey, Block's CEO. The goal is to build an open-source mining system for individuals and businesses.

Block has started hiring to build its engineering team.

New mining tools could positively affect Bitcoin's price

Intel and Block could help Bitcoin's price by encouraging mass adoption. Intel would make Bitcoin mining more energy-efficient, while Block would make the entire process open-source.

However, there's still time until these products become available on the market.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Kliment Dukovski owns Bitcoin as of the publishing date.

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