Corpus ID: 211296648

Pricing ASICs for Cryptocurrency Mining

@article{Yaish2020PricingAF,
  title={Pricing ASICs for Cryptocurrency Mining},
  author={Aviv Yaish and Aviv Zohar},
  journal={ArXiv},
  year={2020},
  volume={abs/2002.11064}
}
  • Aviv Yaish, Aviv Zohar
  • Published 2020
  • Computer Science
  • ArXiv
  • Cryptocurrencies that are based on Proof-of-Work rely on special purpose hardware (ASICs) to perform mining operations to secure the system. We argue that ASICs have been mispriced by miners and sellers that only consider their expected returns, and that in fact mining hardware should be treated as a bundle of \emph{financial options}, that when exercised, convert electricity to virtual coins. We provide a method of pricing ASICs based on this insight, and compare the prices we derive to actual… CONTINUE READING

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