It is entry level so I imagine the Mac Mini M1 performance to be on-par or marginally better than my MacBook Air. I do fancy something which will do video streaming via OBS and handle it well. Today it runs Catalina and a bunch of VM's. For starters, my use case for the Mac Mini was primarily VMware ESXi then Fusion. I've still got my Late 2012 Mac Mini, would like to replace but won't just yet. The Late 2012 Mac Mini is a good piece of kit but then I hear many rave about the new M1's which spec wise and how they compare to the Intel options, they are quite impressive. Maybe not for another 10 years (the web is always a major culprit in making old computers/phones/tablets feel slow and clunky), but who knows. Your Mac Mini should be good for some years to come. I have a 2009 iMac that still works! I hacked it to run Mojave (I seriously love Mojave). The greatest thing about Macs is their longevity. For what you use it for, you might just as well leave well alone. That's if you notice any slowness at all, of course. The RAM upgrade is so simple and quick that you could start with that and see where it gets you. When I got it it was pretty slow with 8GB RAM and a standard HDD. My only technical upgrades to the Mac Mini itself were to upgrade the RAM to 16GB (do that if you haven't already) and I also installed an SSD inside the Mini itself. Mainly because, I think, of a couple of upgrades: RAM, and an SSD for the OS. I don't notice any major performance difference between it and my recent i7 Windows laptop. None of this makes the Mini choke at all. My webdev style is to end up with several different browsers all open at once, each with a dizzying amount of browser tabs open, along with several applications (VS Code, Photoshop, Sketch, Word, random this-and-that apps lurking in the corners, etc.) It mainly does web development these days, which is more taxing on an old computer than you might think. Depends how determined you are to keep the machine going. Even then you'll have optons - there are ways of installing later OSes and getting updates etc. As long as you update your Catalina install when prompted you will be OK. I've got mine still running on Mojave (the best-ever MacOS).
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