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Historically, for many products, high demand leads to lower unit prices as manufacturers become more efficient. Since we're a decade into GPU mining, there's be
by jefftk 5y ago
Historically, for many products, high demand leads to lower unit prices as manufacturers become more efficient. Since we're a decade into GPU mining, there's been a lot of time for manufacturers to adjust. While so far they have not been able to keep up with demand, I don't think it's clear that they never will.
- kelseyfrog 5y agoSorry, not following. Can you explain how efficiencies in GPU production interact with network difficulty to produce lower GPU prices? I'm not finding much in the literature.
- jefftk 5y agoWhat makes hash-based proof of work function is that to produce some number of hashes you need to use some amount of real-world resources. In practice, the two main resource inputs are electricity and computational hardware. If hardware is scarce, as it is now, the hardware will be a large proportion of mining cost, while the more efficiently hardware can be produced, the more of the cost is electricity.
- kelseyfrog 5y agoHow does that make miners not buy GPUs?