Liquidity bottlenecks

Liquidity bottlenecks in computing power assets

On the other hand, traditional miners and centralised cloud arithmetic have little liquidity as assets. Buyers of cloud arithmetic can only hold the arithmetic and cannot change its ownership, so they cannot use it for trading, lending or any other financial operations. This greatly diminishes the asset properties of arithmetic and limits the further development of the arithmetic market. Among miners and arithmetic holders, arithmetic assets with good liquidity can be easily sold or used as collateral: miners, sellers and buyers of arithmetic can have their risk reduced, and capital utilisation can be improved through a combination of diversified finance (DeFi), which offers hedging, quantitative trading and other financial strategies. In addition, the current market design makes the pricing of arithmetic power highly opaque. If the liquidity problem of hash power can be solved, more trading activity in hash power derivatives can be stimulated so that traders without physical hash power can also participate in the price discovery process, thus accelerating the commercialisation of cloud hash power and bringing more capital into the hash power space. This is also a prerequisite for the steady growth of global hash power in the future. The industry therefore urgently needs a decentralised solution for hashpower virtualisation, trading and lending to enable the free flow of hash power.