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Samsung is making processors for cryptocurrency mining

(Image credit: Image Credit: Geralt / Pixabay)

Samsung is jumping into the craze for cryptocurrencies with the launch of a new hardware offering.

The South Korean chip giant has revealed it will begin building ASIC chips specifically designed for mining cryptocurrency. These new chips are usually designed to carry a single task – in this example, mining.

Mining is a process of solving mathematically complex problems that serve to verify the transactions of cryptocurrency coins. Computers who successfully complete these tasks get rewarded with coins.

Samsung has made this revelation in its latest earnings reports, saying these chips will boost its profits even further. 

“Samsung's foundry business is currently engaged in the manufacturing of crypto-currency mining chips," it said in a statement given to the BBC. However we are unable to disclose further details regarding our customers."

Now it seems as Samsung has been developing this chip since last year and has begun mass production earlier in January. One expert is saying Samsung believes Bitcoin is not in a bubble, and it’s betting these chips on it.

"We don't know how low Samsung can sell its chip for and still be profitable," said Garrick Hileman, a crypto-currency researcher from the University of Cambridge. "But if Bitcoin's price were to collapse and enter a bear market like in 2014 to 2015, one would wonder if Samsung would stay with this line of business through such a turn."

Image Credit: Geralt / Pixabay

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.