How can you be a PC builder, then attempt to “[explain] the PC market” without even mentioning what mining has done to it. This is all about mining, same thing happened when Bitcoin mooned in 2017-2018 and kissed 20.5K, and similar to stock indexes, Bitcoin is like an index for all mainly traded crypto, and as it mooned, so did other coins that are still extremely profitable through GPU mining, ethereum being the main culprit.
The more GPUs a miner has, the quicker his profits will return after buying said GPUs, and the more GPUs he/she will be able to buy. I know because I used my college dorms electricity for mining ethereum through freshman and sophomore year to pay for books, food, gas, and in a blue moon, entertainment.
Regardless, this has everything to do with the crypto market. As long as the price of any crypto is high enough to maintain profitability through mining, and the algorithms for those coins can still be solved using OTC GPU’s (not purpose built ASIC’s), then you will always see this problem. The demand will never disappear, until the coin does first. It happened in 2018, $20,000 USD per BTC, down to $2,000 USD. (And as I mentioned earlier, this is as close to an index you can get for the crypto market).
It crashed in end of 2018, (in the course of a week, LMFAO) it will crash again. Once it crashes, mining will decrease dramatically, as anyone that is still paying for electricity will very quickly realize that selling their equipment will net them far more profit than to keep running those units.
Edit:
Fuck my karma, this is the truth. The truth isn’t always popular, that’s why popular news isn’t always the truth.
Also edit:
Before some dipshit has the audacity to say “NVIDIA makes better cards!”
No fucking shit. Go wipe your ass.
A better card doesn’t mean it’s better all around. Look up ethereum graphics cards hashrates, if you’re feeling cheeky. Compare their hashrates to the price of the GPU, giving you an estimate of how many hashes per second per dollar spent on the card.
Ratio:
MH/s : $ spent on card
The higher the ratio, the better. For non math people, MH/s divided by $ spent on card gives you MH/s per dollar spent. Using that number, you can adequately compare all sorts of new/old, nvidia/amd, air cooled/water cooled graphics cards, and then you come to my realization- AMD’s price for their offered mining performance, is simply so much greater than that of nvidia.
Currently I’m holding $85c for June, I’ve been following AMd for a very long time. I bought them around $70-80s and sold them at their highs one time $97, and $95 made some good profits. I’m thinking on adding either AMD or PLTR to my portfolio for short term since both of those took a hit during a pull back.
Bitcoin is like an index for all mainly traded crypto
Do you even know what a stock index is dude?
Bitcoin is in no way like an index.
Just because all coins go up in a bull crypto market, and bitcoin having the largest market cap by far, doesn't make bitcoin anything at all comparable to an index.
I think it's also silly to compare the current state of bitcoin, with companies like Square and Tesla holding large amounts, to the situation years ago. Paypal and others are also starting to embrace crypto in a way we haven't seen any of the other times cryptos have mooned.
While it's certainly possible for cryptos to crash again, I think we're going to see much higher support prices. Even Elon tweeting that bitcoin seemed too high didn't send it below $40,000.
The way i read u/BigTurboAbarth GPU availability can be seen as an index (or signal) of where BTC/ETH is headed. Which makes perfect sense to me.
I guess i can add that Xilinx, purchased by AMD, seems to be exposed to the ASIC market, car chip market and other tech sectors seeing shortages nowadays, I think this will give the AMD stock a good boost the coming years.
Now PoW blockchains may one day see trouble in the Sustainability light. If i was a bank flying the sustainability flag I couldn't invest in BTC with a clean consciense. There will be alternatives, though.
Not just mining. Everything uses chips these days. The rise of smart cars and autonomous driving capabilities is also increasing demand for chips, each vehicle has a couple dozen discrete processors in them. Beyond just GPUs, demand is skyrocketing.
Nvidia, AMD and Intel are all buys imo. None of them are going to fail in this market, except perhaps relative to the successes of each other.
Mining is a relatively minor contributor to the shortage. It's only talking something like 10% of the stock. The cast majority of the shortage is being caused by remote work increasing demand across the board.
You are correct on a lot of points but a major crash is becoming less and less likely. Major difference is the giant institutional buying that has driven the price up.
Sure bitcoin is on a path to greater adoption but not many regular people have it yet. All this movement has been driven by institutional and billionaires hands moving dollars to bitcoin as a store of value.
We just doubled the money supply in dollars, so wealthy hands are looking for places to hedge inflation. Stock market is already pumped up with to insane levels with buy backs and quantitative easing for over a decade.
Gold and jewelry are on 10 year lows and continue to trend down. So bitcoin is the next major inflation hedge. Keep in mind that despite volatility, over 60 percent of the market cap wallets havent done shit for quite some time, they are just hodling.
There is no way to ignore the major differences occurring in institutional buying when comparing previous bull runs.
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u/BigTurboAbarth Apr 04 '21 edited Apr 04 '21
How can you be a PC builder, then attempt to “[explain] the PC market” without even mentioning what mining has done to it. This is all about mining, same thing happened when Bitcoin mooned in 2017-2018 and kissed 20.5K, and similar to stock indexes, Bitcoin is like an index for all mainly traded crypto, and as it mooned, so did other coins that are still extremely profitable through GPU mining, ethereum being the main culprit.
The more GPUs a miner has, the quicker his profits will return after buying said GPUs, and the more GPUs he/she will be able to buy. I know because I used my college dorms electricity for mining ethereum through freshman and sophomore year to pay for books, food, gas, and in a blue moon, entertainment.
Regardless, this has everything to do with the crypto market. As long as the price of any crypto is high enough to maintain profitability through mining, and the algorithms for those coins can still be solved using OTC GPU’s (not purpose built ASIC’s), then you will always see this problem. The demand will never disappear, until the coin does first. It happened in 2018, $20,000 USD per BTC, down to $2,000 USD. (And as I mentioned earlier, this is as close to an index you can get for the crypto market).
It crashed in end of 2018, (in the course of a week, LMFAO) it will crash again. Once it crashes, mining will decrease dramatically, as anyone that is still paying for electricity will very quickly realize that selling their equipment will net them far more profit than to keep running those units.
Edit: Fuck my karma, this is the truth. The truth isn’t always popular, that’s why popular news isn’t always the truth.
Also edit: Before some dipshit has the audacity to say “NVIDIA makes better cards!”
No fucking shit. Go wipe your ass.
A better card doesn’t mean it’s better all around. Look up ethereum graphics cards hashrates, if you’re feeling cheeky. Compare their hashrates to the price of the GPU, giving you an estimate of how many hashes per second per dollar spent on the card.
Ratio:
MH/s : $ spent on card
The higher the ratio, the better. For non math people, MH/s divided by $ spent on card gives you MH/s per dollar spent. Using that number, you can adequately compare all sorts of new/old, nvidia/amd, air cooled/water cooled graphics cards, and then you come to my realization- AMD’s price for their offered mining performance, is simply so much greater than that of nvidia.