I think a lot is going into these gpus. But the point is, I assumed there would be resale value to the gpu’s, easing the costs of liquidations; mergers; and borrowing much like a house is. But it turns out they’re a far more quickly depreciating asset than i imagined, so the capital stock asset is likely a lot smaller than you’d imagine for being that companys primary tool.
Maybe houses isn’t the easiest analogy. Its as if a bus company’s, buses were being written off in half the time you’d expect. It decreases the capitalisation of the business. Or a woodworking company’s CNC wore out quicker than expected.
Its a minor point, but could become important in the recovery phase. As houses as long standing assets became important in a positive direction after the GFC.
I think a lot is going into these gpus. But the point is, I assumed there would be resale value to the gpu’s, easing the costs of liquidations; mergers; and borrowing much like a house is. But it turns out they’re a far more quickly depreciating asset than i imagined, so the capital stock asset is likely a lot smaller than you’d imagine for being that companys primary tool.
Maybe houses isn’t the easiest analogy. Its as if a bus company’s, buses were being written off in half the time you’d expect. It decreases the capitalisation of the business. Or a woodworking company’s CNC wore out quicker than expected.
Its a minor point, but could become important in the recovery phase. As houses as long standing assets became important in a positive direction after the GFC.
*It also means cost per token is impacted
I suspect most of it is going into speculative investment at this point
Most of what is resellable is IP but things move so quickly in tech it’s of limited value until as moated as advanced microchip fabs