Cryptocurrency production can be a little confusing for people that are just getting into the crypto world.
Unlike fiat currencies that get printed on a piece of paper, digital currencies have to be mined in order to become available to users. When people saw that cryptocurrencies are rising in value, they immediately started to mine so they can earn some bitcoins or other tokens. They started buying expensive equipment for the job but it led them to a bizarre usage of the graphics processing units.
Most independent users started purchasing GPUs so they can improve their mining capabilities and all the graphics card producers such as Nvidia and Intel experienced a surge in sales. However, these mining jobs deteriorated fast and miners started losing the potential benefits they had at the beginning. To try and get back what the miners lost, some of them started selling GPUs but a lot of them saw this as an opportunity and now the cost of new GPUs is in a downward trend so it’s even more difficult for them to get their investment back.
The co-founder of Leonardo Render, a company that provides its customers with an alternative way of using their excess GPU explains:
‘’ Now they have a piece of hardware that is worth half of the purchase value, so selling is a desperate but at least in an option to recover part of the initial investment’’.
Other companies are finding new technologies like artificial intelligence so they can provide researches affordable GPU by harnessing former crypto miners’ capabilities. GPU is a very flexible hardware so various use cases are not beginning to evolve. It’s clear that the era of mining is coming to an end, and GPU users are now willing to try different approaches.
Tom Lee Predicts: Bitcoin Will Recover And Will Reach $15,000 By The End Of 2018
“But we believe the negative swing in sentiment is much worse than the fundamental implications.”Lee explained a few crypto-related events that were likely the cause of the recent drop in value on the entire crypto market that happened on November 14. More specifically, he believes that the recent Bitcoin Cash hard fork has really divided the community and that this event is a big contributor in boosting the uncertainty on the market which is responsible for the recent crash. The recent drop, three days ago, is the first major price movement among the major coins and for bitcoin in particular. Lee noted back in November that he was ‘’pleasantly surprised’’ by how stable bitcoin is. At this time he believed that Bitcoin has found its safe space at $6,000.
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“There’s supposedly a limit on there, but where is it written in stone that can’t increase? And of course, the electricity that’s churned out by the miners trying to solve these algorithms is just extraordinary.”He dismissed bitcoin by calling it a black box which is a very complex investment model. Also, Shilling noted that he is very suspicious of many things that are clearly not transparent and said that it is not the best idea to invest in something if you don’t understand it. There are plenty of reasons why bitcoin fails as a currency such as not being a store of value, it’s also not a medium of exchange and it is still not accepted universally.
“All the requirements that you normally have for a currency, it just doesn’t have. The only legitimate use I can think of in bitcoin is off-the-books kinds of transactions, underworld transactions. I just don’t see a legitimate use. It is a game,’’ said Shilling.However, the younger generation of tech millionaires is extremely confident that bitcoin will eventually manage to toss aside all other currencies. Some of them even predict bitcoin to reach a price of $250,000.
‘Time May Be Right’ For Home Crypto Mining: Coinbase CTO
“The big difference with decentralized mining in 2018 is that there are now so many different coins and tokens out there that it’s almost certainly possible to make a profit – or at least mine a decent amount of some crypto – via a decentralized home mining device like Coinmine.”This is a notable perspective mostly because Srinivasan previously founded 21.co which was a startup that emerged from stealth in 2015 and had an ambitious plan to embed Bitcoin miners in everyday devices- which was then backed by Coinbase Ventures. Following the Coinmine announcement, Srinivasan wrote:
“The big difference with decentralized mining in 2018 is that there are now so many different coins and tokens out there that it’s almost certainly possible to make a profit – or at least mine a decent amount of some crypto – via a decentralized home mining device like Coinmine."As we can see from the above stated, the CTO of Coinbase seems optimistic about Coinmine's ability to add even more coins later, foreseeing a future where the company could play a key role in the launch of new tokens.
“I believe that decentralized mining is an important idea and worth trying again. It’s mining as Satoshi intended: many devices around the world with no single point of failure." Srinivasan concluded.
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