Get ready for the 6 month dry spell in mining.

anderl

hero member

Activity: 714

Merit: 500

Quote from: Bitcoins101 on January 18, 2014, 12:51:47 AM

I find it funny that at the first sign of trouble, people are talking about things as though the value of all cryptocurrencies has crashed down to $0.

What was the market cap of all cryptocurrencies on January 17, 2013?

There may be some corrections, but I don't see anything other than growth for all cryptocurrencies, considering the large amount of mainstream businesses which are beginning the accept it.

Of course, mining profitability is a whole different conversation.

Agreed, perception is relative. Most miners getting into cryptos right now are blinded by the short term gains. They haven't hit the pains of negative margins yet. I was a short term miner in the beginning and never really thought about the long term until a few months later. I'm all long term now. I'm in this for the long haul (10 20 years easy).

infofront

legendary

Activity: 2646

Merit: 2842

Shitcoin Minimalist

Quote from: cryptohunter on January 17, 2014, 11:02:01 PM

Timing is everything, sell farms now for hard cash. Buy up all the cheap alts and wait for the next price spike.

Bingo. Sell off GPUs while it's still profitable, use the money to buy cheap alts. Cash out coins when the price is rising, buy cheap GPUs before altcoin prices peak.
Rinse and repeat.

Bitcoins101

hero member

Activity: 910

Merit: 509

I find it funny that at the first sign of trouble, people are talking about things as though the value of all cryptocurrencies has crashed down to $0.

What was the market cap of all cryptocurrencies on January 17, 2013?

There may be some corrections, but I don't see anything other than growth for all cryptocurrencies, considering the large amount of mainstream businesses which are beginning the accept it.

Of course, mining profitability is a whole different conversation.

kalus

sr. member

Activity: 420

Merit: 263

let's make a deal.

all joking aside, isn't this what will also drive down the price of asics faster to prices competitive with video cards? it sounds like the next generation of miners are just around the corner. i'm not even interested in what's being offered right now. it's v2 and v3 that will be the game changers.

the market bubble is in video cards.

anderl

hero member

Activity: 714

Merit: 500

Quote from: kalus on January 18, 2014, 12:44:02 AM

buying more coinye

good luck pumping that scam.

kalus

sr. member

Activity: 420

Merit: 263

let's make a deal.

buying more coinye

anderl

hero member

Activity: 714

Merit: 500

Quote from: kalus on January 18, 2014, 12:33:06 AM

Quote from: anderl on January 18, 2014, 12:21:55 AM

The problem lies in that difficult keep climbing while market cap barely moves. Profit margin gets smaller and smaller and the low hanging fruit disappears. Only the most efficient or the most enduring survive.

sounds like i stocked up on coinye just in time

not really. maximum pain has not been seen yet. the market has to go dry for a few months. meaning people get bored and eventually sell off before someone else does. fear begets fear and then market prices roll over and accelerate into panic sell offs. You bought into coniye or any crypt for that matter at the wrong time. panic sells will start soon and you will be wondering if selling for a small loss is better than selling for a bigger one.

kalus

sr. member

Activity: 420

Merit: 263

let's make a deal.

Quote from: anderl on January 18, 2014, 12:21:55 AM

The problem lies in that difficult keep climbing while market cap barely moves. Profit margin gets smaller and smaller and the low hanging fruit disappears. Only the most efficient or the most enduring survive.

sounds like i stocked up on coinye just in time

anderl

hero member

Activity: 714

Merit: 500

Quote from: krak3n on January 18, 2014, 12:12:05 AM

Despite another 5 or so coins being added to the coinmarket website, the total marketcap of all coins has gone from 14.5bil to Total Market Cap: $ 13,285,709,586... not a good sign.

Yes there was some money outflow. But you are only looking at a small segment of the money flow. Over the last year there has been a tremendous inflow of money into the cryptocurrency market. Since I've been involved over the last 2 year the market cap of the crypto world has gone from 10 million to 14 billion. Even 10 million seems ludicrous back then.

The problem lies in that difficult keep climbing while market cap barely moves. Profit margin gets smaller and smaller and the low hanging fruit disappears. Only the most efficient or the most enduring survive.

krak3n

member

Activity: 61

Merit: 10

Despite another 5 or so coins being added to the coinmarket website, the total marketcap of all coins has gone from 14.5bil to Total Market Cap: $ 13,285,709,586... not a good sign.

anderl

hero member

Activity: 714

Merit: 500

I'm just waiting for the fall out. I'm guessing LTC will hit $10 again and miners will be crying.

PinkPotatos

full member

Activity: 126

Merit: 100

Girls dont crypto?

cheap cards FTW!

cryptohunter

legendary

Activity: 2100

Merit: 1167

MY RED TRUST LEFT BY SCUMBAGS - READ MY SIG

Quote from: anderl on January 17, 2014, 10:06:16 PM

This happens after every big spike in crypto currencies. After the huge profit margins from the spike in price there is a huge influx of new miners trying to get in on the actions. They dump a ton of money into mining equipment and difficulty soars.

Then prices crash from the peak and profit margins for miners dwindle. Miners can barely turn a profit at .20/kw and then a few weeks later at .10/kw. Soon miners start dumping their GPUs on ebay trying to at least break even on them. I was buying 7950 GPUs for $150 each on ebay during the last fall out. Now I can sell the same GPUs for $250 to $300. At the peak they were selling for $400.

Good luck future miners. Hope you don't get too disgruntled this time around.

Timing is everything, sell farms now for hard cash. Buy up all the cheap alts and wait for the next price spike.

Oldminer

legendary

Activity: 1022

Merit: 1001

Mandatory "and so it begins.."

markm

legendary

Activity: 2940

Merit: 1090

Think of mining as an unfortunate expense forced upon you by the need to secure your fortune.

If you have a vast number of a coin, you may need to deploy a vast amount of hashing power to secure it.

If you do a vast number of transactions on a blockchain, you may need to deploy a vast amount of hashing power to ensure your transactions get processed promptly without excessive fees or seignorage imposed by miners.

Etc.

-MarkM-

eddilicious

full member

Activity: 196

Merit: 100

More miner. More coin distribution. More service could be developed for those potential users

anderl

hero member

Activity: 714

Merit: 500

This happens after every big spike in crypto currencies. After the huge profit margins from the spike in price there is a huge influx of new miners trying to get in on the actions. They dump a ton of money into mining equipment and difficulty soars.

Then prices crash from the peak and profit margins for miners dwindle. Miners can barely turn a profit at .20/kw and then a few weeks later at .10/kw. Soon miners start dumping their GPUs on ebay trying to at least break even on them. I was buying 7950 GPUs for $150 each on ebay during the last fall out. Now I can sell the same GPUs for $250 to $300. At the peak they were selling for $400.

Good luck future miners. Hope you don't get too disgruntled this time around.

Topic: Get ready for the 6 month dry spell in mining. (Read 971 times)