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Supply and demand curves are what make things valuable or not. Bitcoin has a finite set of coins in its network. Most people only buy fractions of a bitcoin bec
by orionblastar 9y ago
Supply and demand curves are what make things valuable or not. Bitcoin has a finite set of coins in its network. Most people only buy fractions of a bitcoin because one full bitcoin is too pricy for them.
People used to earn Bitcoins using GPU mining rigs. ASIC miners made that obsolete. GPU mining is no longer profitable but the average person does not know or understand that.
I've seen stores like Microcenter sell out of expensive GPUs and expensive power supplies to power them. My son last year had to build a new gaming PC after his old one blew out. His GTX video card was $240 last year, but now sells for $640.
If Bitcoin is the new gold rush, the people selling shovels and supplies to miners at higher than normal prices will sell GPUs power supplies and high end Clubs and motherboards.
I am using Coinbase since the new year. I invested $1 in Bitcoin and $1 in Litecoin. They are only worth 75% as much now. It was just dipping my toe in the waters before jumping in. I am not going to jump in until I learn more about it. Buy low and sell high and don't invest any money you can't afford to lose or do without before it raises back up to sell for a profit.
- erikb 9y ago> I am using Coinbase since the new year. Why put money in a gold rush after the rush? Can you explain the logic behind it? Like, have you never heard about it before 2018? Honestly if Bitcoin stabilizes around $300/coin it's still a huge profit to the people who started it and invested early (I bout around $90/coin). $12k/coin certainly is ridiculous. But I don't understand why people would even put a single dollar into something at such a point.
- sumedh 9y ago> But I don't understand why people would even put a single dollar into something at such a point. because they think it will go higher
- wereHamster 9y ago$x/coin is no more ridiculous than $y/coin. I'll leave it up to you to substitute x and y for random numbers.
- makomk 9y agoI'm pretty sure that the reason GPUs are sold out everywhere is GPU mining of Ethereum, not Bitcoin.
- orionblastar 9y agoThan you, I have not heard of Ethereum or how to mine it. I'll look into it later when I have some more free time to do so.