How Does the Concept of 'Economic Obsolescence' Apply to Mining Hardware? ▴ Learn

How Does the Concept of ‘Economic Obsolescence’ Apply to Mining Hardware?

Economic obsolescence occurs when an asset is no longer profitable to operate, even if it is still physically working, due to external economic factors. For mining hardware, this happens when newer, more efficient ASICs are released, or when the network difficulty increases, or when the cryptocurrency price drops.

The miner's revenue no longer covers the operational costs, primarily electricity.

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