How Does the Obsolescence Cycle of ASICs Affect the Market for Second-Hand Mining Hardware?
ASICs have a rapid obsolescence cycle, typically becoming economically unviable every few years due to the release of newer, more efficient models. This creates a volatile secondary market where older, less efficient units are sold, often to miners in regions with extremely low electricity costs.
The price of second-hand hardware is highly dependent on the current cryptocurrency price and network difficulty.
Glossar
Rapid Obsolescence
Decay ⎊ The accelerated diminishment of value or utility within cryptocurrency derivatives, options, and related financial instruments represents a core risk factor demanding proactive management.
ASICs
Architecture ⎊ Application-Specific Integrated Circuits represent a fundamental shift in computational hardware within the cryptocurrency ecosystem, diverging from the general-purpose nature of CPUs and GPUs to offer substantial gains in hash rate efficiency for specific cryptographic algorithms.
Obsolescence
Framework ⎊ The concept of obsolescence, within cryptocurrency derivatives and options trading, signifies the diminishing utility or value of an underlying asset, contract, or trading strategy due to evolving market conditions, technological advancements, or regulatory shifts.