Bitcoin Losses Near $200 Billion As JPMorgan Warns It’s The ‘Least Reliable’ Dollar Hedge

[Ajay]

Bitcoin Losses Near $200 Billion As JPMorgan Warns It’s The ‘Least Reliable’ Dollar Hedge

The world’s largest cryptocurrency is down nearly 10% over the past 24 hours.

www.forbes.com

 

[MalVeauX]

No surprise with the political stances that are just now taking office. Just like in some countries, cyrpto is illegal outright because it takes value away from the country's currency and can destabilize economy.

Very best,

 

[Ajay]

Not a surprise given the ups and downs of BTC in general. I just hope that it opens up some additional graphics card supply for all the enthusiasts here (and elsewhere). It's just been nuts for folks trying to get NV 3000 series for AMD 6800 series. Personally, I'll be waiting a while, so things should be better (summer, If I can convince the missus). I just feel for those wanting to build now and finding themselves stymied by the market.

 

[CP5670]

A 10% drop is pretty common in this world and not really noteworthy. It may help increase video card supply though if mining is less profitable. Not sure what the break-even point is.

 

[fleshconsumed]

"Will GFX shipments improve"

No, we've been through this before, cryptocurrency prices would have to fall at least 75% and stay there for a month or two for crypto mining demand to subdue.

 

[ultimatebob]

Wake me up when it gets back down to $10,000, which is where it was when this rally started.

Also, it's been about six years since it was profitable to mine Bitcoin with a video card. I guess that Ethereum is still marginally profitable to mine thanks to the price increase, but even then you're only going to get a couple of bucks a day for each of your $600 video cards.

 

[Fallen Kell]

Bitcoin Losses Near $200 Billion As JPMorgan Warns It’s The ‘Least Reliable’ Dollar Hedge

The world’s largest cryptocurrency is down nearly 10% over the past 24 hours.

www.forbes.com

Even with bitcoin losing, it won't make a difference on graphics cards because the people farming bitcoin are using dedicated ASICS and not graphics cards. The other *coins still use graphics cards and as such until those algorithms get dedicated ASICS or lose value (and future value confidence), the cards will still be impossible to get.

 

[VirtualLarry]

I guess that Ethereum is still marginally profitable to mine thanks to the price increase, but even then you're only going to get a couple of bucks a day for each of your $600 video cards.

That's pretty close to accurate, although "only a couple of bucks a day" is closer to $5/day than $2/day, when you're talking about the RX 5700(XT) family. Most cards have an ROI period of between 100 and 140 days to pay themselves off, then it's (mostly) pure profit. You can see why this activity is popular, then...

Plus, it's winter across most of the USA's northern latitudes, most people can use the heat generated as well.

 

[Ajay]

Ugh, well thanks guys for the comment. Especially @Fallen Kell and @VirtualLarry . No joy then for those looking for high end cards.

 

[VirtualLarry]

Linus weighs in (old - Nov. 2020).

 

[NomanA]

Ugh, well thanks guys for the comment. Especially @Fallen Kell and @VirtualLarry . No joy then for those looking for high end cards.

Not just for high end cards as even RX 580 and RX 570 are offered for $800-1200 at NewEgg and Amazon. It's quite crazy and hopefully the fall in Ethereum price will be so drastic that all these GPU buyers will never try this again.

Before this run started in October, the previous peak was in Jan 2018 at $1200, and within 10 weeks it had dropped down to 30% of the peak leaving a flood of used GPUs on eBay. Hope another such drop is now underway and if the Federal Reserve somehow gets involved and starts to regulate these, it'll get even better.

 

[Rayman30]

We are just in a bear market at the moment, BTC is finite, it will likely continue on an upward trend as whales pump and dump for short term profits. The bigger question is, as mining difficulty goes up due to decreased supply, will that inflation be able to outpace the increasing regulation, attempted control and bans imposed by federal regulators.

 

[Shmee]

I think I know why this happened. He is probably dropping the price to buy more up. The whales are doing their thing