The State of Cryptocurrency

[FordGT90Concept]

Bitcoin skids below $6,000, hits lowest level since November

“None of the crypto currencies currently fulfill any of the criteria that we would look for in an investible asset and we would continue to advise extreme caution. The rout in crypto currencies is still not finished,” he said.

 

[neatfeatguy]

Bitcoin skids below $6,000, hits lowest level since November

Just looked now and BTC is pushing past $6.4K.....what a roller coaster ride

 

[FordGT90Concept]

Probably a bunch of cryptoevangelicals buying thinking <$6k was the floor. They're going to be sorely disappointed.

 

[Space Lynx]

Probably a bunch of cryptoevangelicals buying thinking <$6k was the floor. They're going to be sorely disappointed.

You should do like me my friend, 3 months ago I stopped checking everything, threads like this, prices, everything... my life has improved for the better. If you believe it is a waste of time, then do like me and just toss it from your life, we only have a fixed amount of time in this life my friend. Cheers ~

 

[FordGT90Concept]

Doesn't even come to mind until I see it on Reuters.

Edit: FYI, under $6k; took less time than I expected to sag again.

 

[trog100]

its 6330 now ford.. having a stake in it i wanna see it go up.. you on the other hand dont.. he he..

nether of us know for sure what it will do though or even why it will do whatever it does...

trog

 

[FordGT90Concept]

Broad consensus is down. It hasn't reached the floor yet.

Compounding the price drops is a current lack of volume in the cryptocurrency markets.

“There’s no real spark in the market right now to get it moving, it’s just more sellers than buyers,” said [Matthew] Newton. “It needs something to get markets back to life, like some development on the technology or regulatory side.”

The technology is stale (aside from PoET which doesn't involve mining) and regulation will only continue to further constrict the market.

 

[xkm1948]

Good. Let the downward trend continues.

 

[R-T-B]

Good. Let the downward trend continues.

You do realize price does not coorelate directly to your GPU shortage?

I could be $1.00 and if difficulty dropped enough we'd have the same problems. You guys seem to think crypto will die because the price is down. It won't. It is not killable that way.

 

[FordGT90Concept]

You do realize price does not coorelate directly to your GPU shortage?

It does because people aren't buying pallets full of cards anymore for mining. The profit margin is too small to bother. The real risk of the margin shrinking further makes buying cards for mining now a bad investment.

As with any market, the health of it can be determined by the amount of trading which has been on a steady decline for the last six months.

Difficulty only rises as coins in the algorithm become more and more sparse. With the market as a whole also declining, there's not much money to be made off of transaction fees either.

 

[hat]

It does because people aren't buying pallets full of cards anymore for mining. The profit margin is too small to bother. The real risk of the margin shrinking further makes buying cards for mining now a bad investment.

As with any market, the health of it can be determined by the amount of trading which has been on a steady decline for the last six months.

Difficulty only rises as coins in the algorithm become more and more sparse. With the market as a whole also declining, there's not much money to be made off of transaction fees either.

Difficulty is also affected by how many miners there are. The law of supply and demand applies here too. Around this time last year, BTC was worth $3000 or thereabouts and Ethereum was so good you could get $5/day per GTX1070. Since then, everybody jumped on the bandwagon and now a GTX1070 is averaging $1/day now. If half the miners fell off the face of the earth, those of us left would be getting paid more.

As a miner, I'm basically looking for the best opportunity to sell. My stash of BTC is slowly piling up... and the price of BTC affects how much that is worth. One day I'll use it for something... but right now I'm more like a squirrel gathering nuts.

 

[Space Lynx]

Difficulty is also affected by how many miners there are. The law of supply and demand applies here too. Around this time last year, BTC was worth $3000 or thereabouts and Ethereum was so good you could get $5/day per GTX1070. Since then, everybody jumped on the bandwagon and now a GTX1070 is averaging $1/day now. If half the miners fell off the face of the earth, those of us left would be getting paid more.

As a miner, I'm basically looking for the best opportunity to sell. My stash of BTC is slowly piling up... and the price of BTC affects how much that is worth. One day I'll use it for something... but right now I'm more like a squirrel gathering nuts.

It's also kind of nice that you can use it to spend too, so say you want to upgrade that ancient rig of yours when 8 core 16 thread coffee lake comes out this Fall, just hope on Newegg and checkout with Bitcoin. lol

 

[hat]

That's the plan, but not coffee lake. I'm kinda wanting to wait on ice lake instead with the hardware fixes for meltdown and spectre... but those fixes might prove useless anyway.

 

[Papahyooie]

Probably a bunch of cryptoevangelicals buying thinking <$6k was the floor. They're going to be sorely disappointed.

Good thing you don't play this game, Ford... You're not very good at it.

I'll admit, I did sell out 100% as a stop-loss last week, just above $6200. Bought back in at $5900 when it seemed to stable off a bit. Considering selling again if it hits $6800 for a tidy profit. At the moment, if it hits $6950, I expect it will fall again. If it hits 7k I'll start mining again, so the loss of growth if it does happen to go full bull won't disappoint me too much.

 

[R-T-B]

It does because people aren't buying pallets full of cards anymore for mining. The profit margin is too small to bother.

My point was the profit margin is not directly coorelating to price. By nature of crypto, it will adjust and make it profitable again, regardless of value. Watch.

 

[Space Lynx]

I had hunches Monero would rise when it was 50, Ripple when it was 20 cents, among others. I was always too afraid to dive in. Lot of regrets, and now the game is so complicated I don't get those hunches anymore, and since I need very little money to be happy in this world, I have decided to not risk what little savings I do have. :/ I wish I had the guts to pull the trigger on Monero when it was a 50 a coin though, dangit. I still think it is the future, since the underground has embraced it fully.

 

[hat]

New Nicehash Legacy miner out...

It has support for this X16R algorithm. Nicehash seems to be autoswitching to it, despite its bad profitability. Right now it's at $1.40/day, but if I disable that algorithm, the nest best seems to be DaggerKeccak at roughly $2.12/day...

Maybe a bug in Nicehash's benchmark program? It shows roughly 16MH/s under each card for that algorithm, but that's what it runs at with both cards... one card running it alone seems to do aroud 7MH/s.

 

[John Naylor]

Since then, everybody jumped on the bandwagon and now a GTX1070 is averaging $1/day now. If half the miners fell off the face of the earth, those of us left would be getting paid more.

Running at 300 watts, costs me about $2 a day to run my box.

 

[hat]

That seems a bit costly. Not sure if you've done it or not, but you can usually overclock and decrease power consumption a little with something like Afterburner. I run +55 core, +400 mem and 80% power target on my 1070s.

I think the profitability of the other coins have tanked since this time last year. We're just not seeing the same rewards we were a year ago. We were getting $5/day per GTX1070 back when BTC was worth ~$3000... so the BTC/day rewards had to have been much higher.

 

[FordGT90Concept]

My point was the profit margin is not directly coorelating to price. By nature of crypto, it will adjust and make it profitable again, regardless of value. Watch.

The only way that happens is if a lot hardware gets out.

 

[R-T-B]

The only way that happens is if a lot hardware gets out.

Yeah? And then what when the profits back?

Can you seriously not see it's natural cyclic nature?

 

[FordGT90Concept]

The market is shrinking which is why the price is falling. The only way the "profit" comes "back" is if the market grows. It's only "cyclical" if it grows again which it may never. In which case, this slow attrition that's been happening over the last half year will slowly drive hardware out until there's only hobbyists left making a pittance on transaction fees.

 

[trog100]

The market is shrinking which is why the price is falling. The only way the "profit" comes "back" is if the market grows. It's only "cyclical" if it grows again which it may never. In which case, this slow attrition that's been happening over the last half year will slowly drive hardware out until there's only hobbyists left making a pittance on transaction fees.

so you think and we all know you think negative as far as crypto is concerned.. and yes it is down over the last half year but its up over the last full year and its up over the last full week..

what happens next is a total unknown.. he he..

trog

 

[Papahyooie]

That's not how mining works, Ford. Most crypto at least (who knows, out of the many there are, maybe some don't) have built-in mechanisms to maintain profitability. Hardware leaves the pool of available resources, which drops the difficulty, which means larger shares for those that remain, maintaining profitability. We're in a lull right now, and not enough hardware has dropped out to drop the difficulty, so profitability is indeed low. The "cycle" that RTB is referring to is the difficulty cycle, not the dollar value.

 

[FordGT90Concept]

All cryptocurrencies are only worth what people are willing to pay. That's dwindling too.

Everything is linked to dollar value. People bought hardware with dollars to mine to sell cryptocurrencies to investors which paid in dollars. The market is shrinking because the investors are leaving. It's getting harder and harder to find a buyer for cryptocurrencies as trading volumes fall. Holders are paying to sustain cryptocurrencies out of pocket because selling now barely breaks even. Some stop entirely which decreases difficulty but those that remain are still fighting over scraps. Without new investments to buy all of the cryptocurrencies holders have the "lull" is self propagating.