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Thank goodness. Hopefully they aren’t able to grift another coin up enough to be worth mining.

by generj 4y ago

yieldcrv 4y ago
If enough GPU miners stop, it becomes profitable for other GPU miners to mine. Fortunately that's currently 90% fewer GPU miners at the moment, across the whole sector.
- BuckRogers 4y ago
  That's a good outcome. We'd still be in a situation with so many fewer miners that GPU prices aren't influenced as they have been. The investment becomes risky as it'll always be teetering on the edge. I'm finally looking forward to a new GPU to pair with this 11900K.
  - f38zf5vdt 4y ago
    Didn't this already happen several times in the history of cryptocurrency? Then GPUs because scarce again when the price of them goes up.
    - velmu 4y ago
      Yes. Nothing unique.
    - yieldcrv 4y ago
      yes and it will happen again! the 2020 cycle was a triple whammy though 1) semiconductor and supply chain shock 2) cryptocurrencies zooming in price and profitability again 3) cryptocurrencies actually being used. in all prior cycles, blockchains were empty (although people got a glimpse of what congestion would be like, during the 2017 cycle). miners earned the subsidy made for people to show up at all. miners are also privy to a cut of transactions that occur, but this was close to 1% of the subsidy. in the 2020 cycle it was 250% on top of the subsidy, frequently, and way more than that as blocks were full. All mining calculators were wrong because they only show the predictable subsidy and not a forecast based on an average, but miners learned how profitable it was. Automated Market Makers (Uniswap code and classes) and Automated Lending (Compound) were 2020 cycles killer apps built on top of 2017’s killer app of ERC20 tokens. Followed by NFT’s and their marketplaces. Other chains secured by GPUs will get this activity, periodically.
      - plonk 4y ago
        With the second-largest cryptocurrency using PoS, do you really expect the PoW ones to stay profitable for more than a niche group? I'd expect people who want to actually use it for something else than speculating to move to the superior tech that doesn't contribute to climate change. At this point Bitcoin etc. would become no more than a betting platform.
        yieldcrv 4y ago
        There are people that support the concept of Proof of Work that aren't miners, so some other networks could zoom in value. Ethereum Classic is still a $5bn marketcap, for example. More people will be swayed if Ethereum mainnet works after further phases of its scaling plan, without user experience drawback. Ethereum post-merge still has some ambitious theoretical things, like sharding. This should have some drawbacks. People think scaling isnt possible without drawbacks so are fine with lower bandwidth Proof of Work that just meters by transaction fees.
LazyMans 4y ago
Yeah, looks like it's all trash now. https://whattomine.com/gpus https://whattomine.com/gpus
- MuffinFlavored 4y ago
  I see peak Profit 24h at $0.29 What was it before ETH PoW -> PoS merge? And is 0.1 $/kWh average/normal? Let me pull up my latest electric bill (which I almost have never looked at/have on autopay): New Charges Rate: RS-1 RESIDENTIAL SERVICE Base charge: $8.99 Non-fuel: (First 1000 kWh at $0.073710) (Over 1000 kWh at $0.083710) $76.74 Fuel: (First 1000 kWh at $0.034870) (Over 1000 kWh at $0.044870) $36.49 Electric service amount 122.22 20.99 in taxes / surcharges Total $143.21 $143.21 for 1036 kWh in a 30 day timespan 0.138 $/kWh with taxes and fees I guess for me, I'm sure if I was doing crazy ASIC stuff at my house they'd charge me more/the rate would become less favorable Looks like mining BTC would net be $0.85 a day profit with some kind of ASIC. $310/yr. Yikes.
- ComputerGuru 4y ago
  It doesn't matter if its trash so long as its fungible trash at a profitable price. i.e. the situation is OK for now but as soon as the market adjusts to the glut of GPU miners suddenly minting no-name coins no one really wants (and the novelty wears off) those prices are going to drop like a rock. Most of these coins only have value as scams that you could prop up then cash out by exchanging for BTC or ETH; so long as the "new coin of the day" hype train exists there will be a way to make money off of GPU mining. I guess there will always be suckers in this unregulated market.
- JohnTHaller 4y ago
  It only takes 10-20 years to break even on mining now. It's long term instead of short term!

Thank goodness. Hopefully they aren’t able to grift another coin up enough to be worth mining.

by generj 4y ago

Thank goodness. Hopefully they aren’t able to grift another coin up enough to be worth mining.

If enough GPU miners stop, it becomes profitable for other GPU miners to mine. Fortunately that's currently 90% fewer GPU miners at the moment, across the whole sector.

BuckRogers 4y ago
That's a good outcome. We'd still be in a situation with so many fewer miners that GPU prices aren't influenced as they have been. The investment becomes risky as it'll always be teetering on the edge. I'm finally looking forward to a new GPU to pair with this 11900K.
- f38zf5vdt 4y ago
  Didn't this already happen several times in the history of cryptocurrency? Then GPUs because scarce again when the price of them goes up.
  - velmu 4y ago
    Yes. Nothing unique.
  - yieldcrv 4y ago
    yes and it will happen again! the 2020 cycle was a triple whammy though 1) semiconductor and supply chain shock 2) cryptocurrencies zooming in price and profitability again 3) cryptocurrencies actually being used. in all prior cycles, blockchains were empty (although people got a glimpse of what congestion would be like, during the 2017 cycle). miners earned the subsidy made for people to show up at all. miners are also privy to a cut of transactions that occur, but this was close to 1% of the subsidy. in the 2020 cycle it was 250% on top of the subsidy, frequently, and way more than that as blocks were full. All mining calculators were wrong because they only show the predictable subsidy and not a forecast based on an average, but miners learned how profitable it was. Automated Market Makers (Uniswap code and classes) and Automated Lending (Compound) were 2020 cycles killer apps built on top of 2017’s killer app of ERC20 tokens. Followed by NFT’s and their marketplaces. Other chains secured by GPUs will get this activity, periodically.
    - plonk 4y ago
      With the second-largest cryptocurrency using PoS, do you really expect the PoW ones to stay profitable for more than a niche group? I'd expect people who want to actually use it for something else than speculating to move to the superior tech that doesn't contribute to climate change. At this point Bitcoin etc. would become no more than a betting platform.
      - yieldcrv 4y ago
        There are people that support the concept of Proof of Work that aren't miners, so some other networks could zoom in value. Ethereum Classic is still a $5bn marketcap, for example. More people will be swayed if Ethereum mainnet works after further phases of its scaling plan, without user experience drawback. Ethereum post-merge still has some ambitious theoretical things, like sharding. This should have some drawbacks. People think scaling isnt possible without drawbacks so are fine with lower bandwidth Proof of Work that just meters by transaction fees.

LazyMans 4y ago

Yeah, looks like it's all trash now. https://whattomine.com/gpus https://whattomine.com/gpus

MuffinFlavored 4y ago
I see peak Profit 24h at $0.29 What was it before ETH PoW -> PoS merge? And is 0.1 $/kWh average/normal? Let me pull up my latest electric bill (which I almost have never looked at/have on autopay): New Charges Rate: RS-1 RESIDENTIAL SERVICE Base charge: $8.99 Non-fuel: (First 1000 kWh at $0.073710) (Over 1000 kWh at $0.083710) $76.74 Fuel: (First 1000 kWh at $0.034870) (Over 1000 kWh at $0.044870) $36.49 Electric service amount 122.22 20.99 in taxes / surcharges Total $143.21 $143.21 for 1036 kWh in a 30 day timespan 0.138 $/kWh with taxes and fees I guess for me, I'm sure if I was doing crazy ASIC stuff at my house they'd charge me more/the rate would become less favorable Looks like mining BTC would net be $0.85 a day profit with some kind of ASIC. $310/yr. Yikes.
ComputerGuru 4y ago
It doesn't matter if its trash so long as its fungible trash at a profitable price. i.e. the situation is OK for now but as soon as the market adjusts to the glut of GPU miners suddenly minting no-name coins no one really wants (and the novelty wears off) those prices are going to drop like a rock. Most of these coins only have value as scams that you could prop up then cash out by exchanging for BTC or ETH; so long as the "new coin of the day" hype train exists there will be a way to make money off of GPU mining. I guess there will always be suckers in this unregulated market.
JohnTHaller 4y ago
It only takes 10-20 years to break even on mining now. It's long term instead of short term!