The problem with Bitcoin is it has zero underlying value so even shorting it is a random walk.
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Gizmodo: Crypto Platforms Are Halting Withdrawals as Bitcoin Tanks Over 13%
- Thread starter Teh_Lurv
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The problem with Bitcoin is it has zero underlying value so even shorting it is a random walk.
just what the unregulated currency market needs, unregulated derivatives. Healthy ecosystem.
I refuse to believe that a "lot" of people did this.
But I definitely believe that "some" people did.
I have been following Tether with some morbid curiousity, and the marketcap keeps going down. It actually keeps dropping in steps of $1B, wonder what that means.
There are so many Tethers that even a small change of valuation will result in a dramatic loss of value for a coin that's supposed to hang around 1$.
Think of it as what happens to the global value of every single US dollar in existence if it drops by 1/10th of a cent.
That doesn't explain the $1B step drops, though, without any follow up rise. Besides the Tether value doesn't seem to line up with the drops.
Seems like cashing out $1B Tether at a time, though I wonder if it also maybe something Tether themselves are doing in background.
I only know that almost each day at midnight London Time/GMT the cap go almost 1 Billion down.
Ah, ok, I misunderstood what you were saying.
Seeing how it's happened before, it wouldn't be surprising if they run away with the money and are never heard from again.
Most will probably be sold.
Ethereum is like 90% of the GPU mining market. A 10X increase in miners on those other coins would probably seriously hurt profitability, and they are already less profitable to mine than Ethereum at current prices.
For sure. Most people don't know how to do that.
There is definitely a handful of people who did it and I bet they did a fair $ chunk too... I know some dude who restructured his Super Annuation (401K) to invest in Bitcoin when it was at its peak... Nothing like burning up your retirement funds 0_0
I'd like to find a 2060 Super for under $150. That's my dream.
I know some other people commented on it, but just for anyone unaware of how mining rewards work for some crypto and how switching to other coins probably won't help miners long term:
In real simple terms, a lot of crypto has what's known as mining "difficulty". A lot of crypto (like bitcoin) is set to only issue a finite amount of the coin before eventually there are no more rewards to be had. In order to stop people from brute forcing through the entire planned amount by piling a massive amount of resources into miners, a dynamic difficulty system can be put in place that scales to the amount of mining going on in the network, ensuring the constant drip feed of mining rewards as planned.
You can see it as:
Examplecoin is designed to ensure that 10 coins are issued as mining rewards on average every 1 hour. These rewards will (statistically) be divided amongst the examplecoin miners relative to their contribution to the overall mining amount. So if user 1's miners represent 10% of the overall mining workforce, he would expect to see 1 coin every hour. If you had 10 users each representing 10% of the total mining workforce, each would expect to see, on average, 1 coin per hour.
If an 11th user decided he wanted to join in, with a mining rig equivalent to the previous 10 users, he's not going to get 1 coin per hour, because now there are 11 miners evenly contributing, so they each only represent roughly 9% of the total workforce, and now are only going to get 0.9 coins per hour. The network will scale the workload higher to ensure that the 10 coin per hour benchmark is maintained.
The more and more users you pile on, the lower and lower your percentage of the take will get relative to everyone else. If you had 100 users of equal mining strength, now you're only 1% of the workforce, and since the system is designed to dynamically scale the amount of mining power required to ensure that the rate of 10 coins per hour is held, you're only going to get 0.1 coins per hour.
You might realize that 0.1 coins per hour isn't actually enough profit to offset your electricity costs, or would take an astronomical amount of time to recoup your investment on buying the card and you simply consider it "not worth it".
At that point, selling the card is probably going to get you the greatest return if you can do so before the flood of used cards hits the market and tanks the prices.
But there's a psychological component to this that makes you want to continue mining, because if "other" users start dropping out because they think it's unprofitable or unsustainable, "your" share of the rewards is going to increase and potentially cross back over into profitable territory. Switching to another coin (if enough people do it en masse) will just cause it's profitability to drop due to the increased amount of a workforce, and you're back in the same boat. So you commit to mining the coin you're already mining, in the hopes that other weaker willed miners go the route of selling their cards.
So right now miners are sort of playing chicken with each other, since they know "some" people aren't going to be able to weather the storm and decide to get out, and that's potentially going to put them back in profitability territory, but the longer it goes on the more likely they'll become that person if things don't turn around.
OP
OP
Linus Tech Tips did a video awhile back where they compared used mining GPUs versus a brand new GPU of the same model. Their tests found no appreciable difference between either card.
DON'T Buy a Used Mining GPU! - $h!t Manufacturers Say
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youtu.be
No one is using the PS5 to mine (so far as I know), PS5 is simply supply chain issues that aren't really related to crypto.
Once ETH goes POS which despite the memes, is actually progressing and getting closer and closer; thats a wrap IMO for 90% of GPU mining. It will basically be a thing of the past. BTC mining hasn't been GPU based in forever, its all ASICs, and these other tiny mining projects arent nearly as established and wont shoulder the weight of people trying to swap over at all.
Second hand GPU flood is inevitable. Im not naive enough to think we will get the good ol'days of GPU prices back though. No way no how.
Second hand GPU flood is inevitable. Im not naive enough to think we will get the good ol'days of GPU prices back though. No way no how.
I can tell you this much, their fans are probably not going to last much.Linus Tech Tips did a video awhile back where they compared used mining GPUs versus a brand new GPU of the same model. Their tests found no appreciable difference between either card.
DON'T Buy a Used Mining GPU! - $h!t Manufacturers Say
Thanks World of Tanks for sponsoring today's video! Use invite code TANKMANIA at https://tanks.ly/3w3Wx7B and get the Excelsior Tier 5 tank, 250,000 credits,...
I really don't get how POS is meant to appeal to anyone not already heavily "invested" in crypto.
"POS is just a few months away for real this time. Srsly. This time they really mean it it's totally different from all those other times over the past 12 years it's happening for sure you'll see"
lol
lmao
lol
lmao
Actually a GPU from any halfway decent miner is prob in pretty good shape, has been run with proper cooling, likely even underclocked etc. I'd be fairly comfortable buying one from a large verified seller with decent amount sold/reviews.
Because it makes it a viable option for companies/funds to invest in while maintaining their ESG mandates (which definitely isn't the case with PoW). In addition to that it offers yield through staking, which again makes it more attractive to such funds.
But if you mean to a basic end user, no - there will be no real material change as a result of the merge (other than likely price appreciation as the supply dynamics are completely changed), and I can't think of any reason why someone (a retail user) who isn't interested in ETH at present would be interested in it more following the merge.
...but it actually is this time. It's already fully deployed on testnet for about a month or so. Believe there are two further deployments to other testnets before then (moving it further along the lines to prod) but really at this stage there is absolutely ZERO reason to believe it won't ship this year (believe it's targetted for Sep, but shit happens and the delays have been plentiful as you say, so saying it will be out this year is a much safer bet).
I don't think it'll take long. I just got a refurbished 3060, but I was looking at a 2070 super refurbished for £272 before that. Prices are starting to drop finally.
Put my 3060 in my pc yesterday and finally can play pc games again without issues. So I'm happy crypto finally crashed.
And how exactly do you do Defi with a traditional database?
Yep. New fans, new paste and thermal pads and you're good.
For ETH perhaps, but we've seen a lot of interesting dilution attacks on various governance and related staking based structures over the last few weeks. As prices fall, it becomes easier and easier to mount such challenges and they are not theoretical. It's even more dangerous when there is centralized control of minting.
what's the point if people are just going to use coinbase, robinhood etc? none of this is what they say it is. it's the same shit but way more complicated and worse in every way
also virtually no one is actually interested in ~decentralization~
they're interested in making (but losing) money
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If you were spending $1500 each on 3080s to mine, you were putting down an upfront capital investment already. The profitability of PoW mining also depends heavily on energy costs, so it is more beneficial to rich people who can afford to set up a large-scale mining operation wherever energy is cheapest. So PoW already advantages rich people.
It also benefits those people who are both gamers and miners, since their capital investment can be used for both things. The people being most disadvantaged in that scenario are the gamers who do not want to mine, but end up paying inflated prices based on the mining opportunity cost. The miners who do not want to game are probably also being disadvantaged in the pricing, but to a much lesser extent.
The other people who benefited - at least temporarily - were scalpers who took advantage of arbitrage opportunities. Of course arbitrage doesn't last forever, and the effect of it was cause GPU makers to raise prices, returning that excess profit back to the rich people running the companies.
The argument in favor of POS from a market perspective is that it allows more direct investment, without the distortions of the GPU or energy markets. If you were someone exploiting those distortions for profit, this will be less appealing to you. If you were someone who simply wanted to make a pure crypto investment or someone who simply wanted to play games, it will be more appealing. And of course, the environmental aspect ought to be appealing to everyone.
That's just for trading/exchange, I was talking more about stuff like lending etc. Agree though in general that yes, most people don't care about decentralisation (and to be honest, I'm one of them).
I read an interesting comparison recently via-a-vis decentralisation.
For decades now basically anyone could set up their own email/web server. It's not rocket science and really cheap. But hardly anyone does it because people care much more about convenience. Same here with people just leaving their money on a crypto exchange instead of cold storage.
It's really a tiny fraction of people that give a toss about any of this.
This is the thing Cryptobros don't understand. People want the benefits of "DeFi" without the drawbacks.
The pure DeFi sounds like a libertarian hell scape where you can't trust anyone and social contracts are a bunch of If/Then statements where you're looking behind your back the whole time cause everyone and anyone can scam you
Mining GPUs are usually undervolted as low as possible and core clocks scaled back for ETH, what matters is memory and perf/watt.
Isn't that the just Star Trek's Ferengi economy and government?
The most damage to markets is probably done and this is just a postmortem when these sums unfold from creditors, but god damn how can these VC firms be so reckless with their money they lose a cool billion bucks just like that?
Even worse, borrow a cool billion bucks from someone - and then lose it.
Even worse, borrow a cool billion bucks from someone - and then lose it.
Peer to peer lending was already a thing. It just got made unviable by regulation.
The only good argument I've ever heard for cryptocurrency is that it can cut out the merchant processing fees whenever someone uses a credit or debit card. It's literally a few percent of every consumer transaction going to some financial institution, completely pointless.
However, the main issue with every crypto coin is that it's literally just a brand name on an algorithm that has nothing to back up its value.
So the logical conclusion is that eventually, we'll have currencies like the USD or Euro moving to be blockchain-based but using whatever algorithm has the lowest/almost zero transaction cost.
However, the main issue with every crypto coin is that it's literally just a brand name on an algorithm that has nothing to back up its value.
So the logical conclusion is that eventually, we'll have currencies like the USD or Euro moving to be blockchain-based but using whatever algorithm has the lowest/almost zero transaction cost.
Only the transaction costs in energy are much higher, and crypto can never handle as many transactions as current systems can simultaneously due to its design. Also transaction costs are way higher generally.
Crypto is never going to replace existing transaction methods. It's slower, more inefficient, costs significantly more, and is less secure.
I'm not a crypto expert at all but I did a quick googling and it looks like Solana has a much cheaper transaction cost than Visa, Stripe, or any cryptocurrency.
I have no doubt that it's less energy-efficient than a traditional database but if it is possible for a blockchain algorithm to be cheaper (price-wise) and capable of handling the volume of transactions that society makes every second, then it makes sense to use it for all digital purchases.
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