The demand for the DRAM (Dynamic Random Access Memory) memory chips is largely reliant on smartphone manufacturers, data centers, and virtual coin miners. The smartphone industry has been experiencing slacked growth for almost 2 years and this has severely affected the demand for this chips -explained a representative of a company in Tokyo that deals in these accessories.
More notably, the demand for these chips has been scaled down further by the decline in Cryptocurrency trade. The virtual coins market has been through turbulent times in the last 24 hours. The price of Bitcoin, for instance, has dropped from 9000 USD to 8288 USD in the last one week.
The representative explained that demand for DRAM memory chips hit a record low in April as soon as the Cryptocurrency market started experiencing tough times. He noted that the many orders they previously received from companies during the peak of Cryptocurrency have since declined. The demand was eminently strong from virtual coin miners who use the chips to store their data.
Need for a DRAM in Virtual Mining
Virtual Mining is the basic process that forms the bigger part of the trade and acts to verify online transactions in a highly complex Cryptocurrency system. As a result, it requires processing of huge quantities of data to decrypt the codes.
Several traders are involved in this and the first person to crack the code is allowed by the system to record the transaction data on a digital online platform and then receives coins as a reward in the end. This is the primary method of obtaining these virtual coins and therefore lots of storage space is necessary during mining.
Biggest Coin Heist in History
The Cryptocurrency firm Coincheck based in Tokyo suffered major theft with an estimated 534 million USD going down the drain in a theft case that involved hacking. This incidence affected many clients that were registered with the company and is so far the biggest coin heist ever reported.
Immediately Coincheck discovered the theft, it suspended all transactions further affecting cryptocurrency business in Japan. This has had serious implications on other market players such as DRAM, which had banked on virtual coin trading to revitalize its income. The price of memory chips dropped over time with the technological improvement that saw phone manufacturers increase production.
In recent times, the prices of these chips have had a lifeline in Cryptocurrency as the trade becomes more established. The heist, however, alongside other market forces have gradually slowed down the trade especially in Japan plummeting the prices once more added the representative.
Meanwhile, Bitcoin recorded a 3 percent rise in value over the last week despite a rough 24 hours, which saw prices of major virtual coins and tokens drop. Despite dropping from 9000 USD to 8288 USD in the last week, its value compared to other virtual coins has strengthened. This comes as good news in the wake of these market challenges. Hopefully, the difficulties being experienced in the Cryptocurrency market especially in Japan will soon be over.