I sure hope Bitcoin miners selling their assets is good for us crunchers
28 Jan 2021 0:53:54 UTC
Topic 224628
(moderation:
It would be REALLY nice if the Bitcoin miners started letting go of some of their high end gpu's so the rest of us can use them for crunching!!
https://finance.yahoo.com/news/bitcoin-falls-miners-sell-institutions-202511164.html
The article says they are
)
The article says they are selling coins, not that they are selling hardware.
For Bitcoin itself, nobody at appreciable scale uses GPUs anymore. The more dedicated hardware (was ASICs last time I knew) is not only more capital efficient, but it is so much more power-efficient that it has driven up the difficulty setting so that a GPU setup burns more power than the value of the coins it mines.
Some of the other coins are a different story.
the crypto market in general
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the crypto market in general is so volatile that changes to BTC value impact the smaller coins as well, they all follow the same basic trends with few outliers. if the coin value goes down, profit goes down, and it can be a vicious cycle of mass panic and selloffs that crash the value to the point that mining then becomes unprofitable, then the market gets flooded by ex-miners cutting their losses and liquidating their assets. the same thing happened in 2018. and 2013/2014.
though I don't think that will necessarily happen right now. there's still a lot of buy pressure and huge investment by big firms. we've been through this cycle several times now of a huge run up in price followed by a crushing correction, and I think a lot of people are just waiting for that and watching, and any dip or sign of decline gets followed by "This is it! Abandon ship!".
but the price would have to fall A LOT to get into being unprofitable. so we're in this mess for quite a while yet it seems.
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