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Chip Shortages and Climate Laws Will Affect Bitcoin Mining

Riot Platforms, a major company within Bitcoin mining, assures that the activity will be affected by two major conditions in the near future. On the one hand, the lack of chips for mining equipment; on the other, climate regulations around the world.
In its 2023 annual report, Riot states that major miner manufacturers in the world have been affected by the shortage of semiconductors used in the production of specialized ASIC chips. As Bitcoin mining relies heavily on these chips, this is a problem that, far from affecting Riot alone, is a general one.
The semiconductor shortage, in turn, has two causes: a global supply chain crisis and rising demand, Riot says. Such conditions also increase the production costs of mining ASICs, which are then sold at a higher price to mining companies.
Weather laws, another factor in Bitcoin mining
In addition to the situation around ASIC chips for Bitcoin mining, another very important issue has to do with the possibility of future climate regulations. Some of those new laws could require facilities to shut down during extreme weather events and lead to consequences such as operational disruptions and costs not covered by insurance.
The lack of consistent climate legislation creates economic and regulatory uncertainty for the company. New laws and regulations related to climate change could lead to new costs for Bitcoin mining companies, including additional requirements for energy, equipment, environmental monitoring, and compliance.
Source: Cryptonews