How Does the Concept of “Opportunity Cost” Apply to Investing in an ASIC versus a GPU?
Opportunity cost is the value of the next best alternative that is foregone when a choice is made. By investing in an ASIC, the miner foregoes the flexibility of a GPU, which can be easily repurposed to mine different coins or sold on the consumer market.
The opportunity cost of the ASIC is the lost potential profit from other GPU-mineable coins or the liquidity from the GPU's higher resale value.
