What Is the Potential Impact of a Government Ban on ASIC Production on a PoW Network?

A ban on ASIC production would immediately halt the supply of new, efficient mining hardware. Over time, this would lead to a decrease in the network's total hash rate as existing ASICs fail or become obsolete, potentially lowering the barrier to entry for GPU/CPU miners.

However, it could also cause a massive price spike for existing ASICs and lead to a black market for the hardware, creating new forms of centralization.