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Bitcoin value dropping

Surfmurder

1 month ago

With Bitcoin value dropping around 3000$ this week, does anyone think we will have the opportunity to skip the next wave of GPU prices skyrocketing going into the next year? This could be good fortune considering new cards dropping soon and people using this time as an opportunity to upgrade.

Comments

  • 1 month ago
  • 5 points

I don't care, because I only use BitConnect.

BitConnEEEEEEEEEEEEEEEEEEEEEEct. BitConnEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEct!

WASOWASOWASOWASOWASOWASO.

https://www.youtube.com/watch?v=suwsR6fXU_M

  • 1 month ago
  • 3 points

The world is not anymore the way it used to be!

Mmmmmmmm: no, no , no!

  • 1 month ago
  • 2 points

Hey, hey, hey... HEY, HEY, HEY!!!

  • 1 month ago
  • 3 points

Serious miners haven't GPU-mined bitcoin for profit in quite a few years. However, there certainly are plenty of "get rich quick" hopefuls who invest in mining rigs and/or cryptocurrencies themselves without getting a basic understanding of the process. Knowledgeable miners seeking to earn a profit would stick with coins on algorithms that are currently accepted to be ASIC-resistant.

The strength of the argument for a direct causal relationship between GPU miners and graphics card prices is often overstated. Many such models are based largely on an oversimplified understanding of supply and demand. If more graphics cards are in particular demand, scarcity alone is insufficient to cause a price increase. Rather, it is one scenario that permits circumstances where a manufacturer and/or retailer could choose to increase prices while still selling out, should enough customers still choose to agree to those increased prices by making purchases. The cost of producing a card did not skyrocket as a result of increased demand: production didn't skyrocket, workers weren't getting big raises, and raw materials were not getting more expensive as a result of demand. Manufacturers and/or retailers saw an opportunity to significantly increase profit per unit because enough consumers were willing to pay such high prices.

Some people try to reduce it to some sort of real-time auction, where miners keep raising the bid until their expected ROI time exceeds what they're willing to gamble, then non-miners are forced to choose between not buying, or "outbidding" enough of the miners to secure a card. However, we should note that this model fails to acknowledge the fundamental role of the seller in selecting the price. Second, think about who typically ends up purchasing the cards at those prices.

For a gamer or someone using a card for TensorFlow or some other nontraditional application outside of mining, ROI for a graphics card is usually more qualitative. For example, a gamer might think of it in terms of the increased enjoyment and quality of experience from playing more graphically intense games and/or with higher settings, as well as how long and frequently this benefit would be taken advantage of. Knowledgeable profit-seeking miners were generally not the ones paying peak prices for cards. Paying well over $1000 for a GTX 1080ti, or $500 for an RX 480/580 significantly reduced hopes of reaching ROI, even at the best times for mining (in terms of cryptocurrency prices and difficulties), and including expected resale value of the card.

In short, we've seen a sufficient number of consumers, outside of miners, are willing to pay inflated prices for the qualitative benefits offered by purchasing these graphics cards. Nvidia certainly hasn't ignored this, with their relatively expensive MSRPs for the original RTX 2000-series launch. Perhaps AMD's next release will shake things up enough for a sizable price decrease. Perhaps not. Surprise, surprise: price speculation is speculative.

  • 1 month ago
  • 3 points

Important to note that Bitcoin is actually on an upward trend, even with the drop that happened in the last couple days (that was precipitated by a spike).

That being said I doubt it's going to affect GPU prices at all right now.

  • 1 month ago
  • 2 points

According to the market, at 9:54am EST Bitcoin has gained approximately $2,000 this week overall. Where did you get that it dropped $3K? Lol

It was up almost $4K but it dropped again yes, but overall it’s on an upward trend.

  • 1 month ago
  • 1 point

I must have missed something then. I didn't see the spike, but now that I'm looking, you are correct.

  • 1 month ago
  • 1 point

I wouldn't expect a big jump. The BTC craze/trend ended with the 22 December 2017 price crash. Nowadays people are more cautious about investing in this thing. People will still be buying mining rigs, just not as much or as many as before

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