What Is the Financial Implication of a Cryptocurrency Hard-Forking to a New Algorithm on Existing ASIC Miners? ▴ Learn

What Is the Financial Implication of a Cryptocurrency Hard-Forking to a New Algorithm on Existing ASIC Miners?

If a cryptocurrency hard-forks to a new, ASIC-resistant algorithm, the existing ASIC hardware designed for the old algorithm becomes immediately obsolete for that chain. The financial implication is a complete loss of value for the specialized hardware, turning it into a stranded asset with minimal salvage value.

This risk is a major factor in the CapEx decision for ASIC miners.

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