Bernstein estimates that the bitcoin mining hardware market is expected to reach $20 bln in five years. Competition among chip makers will become more intense. Will this lead to lower prices and higher efficiency, or will there be a shortage of equipment due to excess demand?
The bitcoin mining hardware market could evolve in different directions. On the one hand, the emergence of new players like Block and Auradine could lead to lower prices and better rig efficiency. This tends to happen when competition heats up. But on the other hand, if demand actually grows as fast as analysts predict, a shortage could occur. Then prices, on the contrary, could go higher.
Most likely, we will see some price reduction soon. But if demand continues to grow, there may be times when there will be a shortage of equipment and prices will rise. Much will depend on how quickly manufacturers can increase capacity and implement new technologies. However, it is difficult to predict exactly how everything will turn out since too many factors influence the outcome.