What is really happening?

Communities Science, Engineering, & Security
1

I understand one of the reasons cryptocurrency prices are crashing is because China has decided to add cryptocurrency it’s firewall making it illegal For Chinese citizens trade for real money or even access exchanges. However, considering China is home to about 3/4’s of the world’s miners, why is it the nether difficulties nor global hash rates have gone down at all?

Any ideas as to what is happening here?

2

Among other reasons, it wouldn’t surprise me if it was just time to sell. It’s not like crypto currency is actually used for anything. Until it is it’s just something to buy then sell into real currency when it goes up.

2 Likes
3

Because what’s mined is mined and coins are finite

Can’t speak for hashrate

Also this

4

Sounds like a question for the crypto currency lounge

5

To many lounges…

seems reasonable as a thread considering it is news.

4 Likes
6

And I was just about to sell a 570… dammit.

7

But that is the point of the post. If China has about 3/4’s of the world’s hashing power, why have global hash rates fallen off a cliff?

8

I have not looked to deeply into some articles. But it appears it is still possible to mine in China.

Also found this but can’t read it.

https://bitcoinwisdom.com/bitcoin/difficulty

Also if you have the Bloomberg channel on TV you could watch that. They talk about BTC and ALT coins from time to time.

Also this:

1 Like
9

570’s are a waste of money. RX 480’s and GTX 1080’s are where it’s at.

10

People are realizing that using it as an actual currency is useless at the moment.

4 Likes
11

maybe it has successfully resisted use as a currency

13

initially replied to wrong post…

14

If I knew the answer I would have known enough to buy this stuff years ago.
I’m guessing the people who know what is happening already sold their stash, didn’t tell anyone and are now living on an island :slight_smile:

1 Like
15

To think that there are Teens/early 20 somethings out there that most likely used their parents money to buy computers/mining equipment, became millionaires or at least rich before they had a real job makes me mad.

The bubble is popping.

2 Likes
16

Let’s hope so then maybe pricing on GPU’s will get back to normal. I hope of course no one who is mining loses their shirt. That would be terrible.

2 Likes
17

Makes me madder I bought my kid a 200 dollar GPU and all she did with it was play video games :slight_smile:

2 Likes
18

But bitcoin is not mined with video cards so it will have no affect on the price.

19

I think there are a two reason as to why the price is dipping this hard.

  1. It experienced an exponential run-up and as others have mentioned, there comes a time to sell and make gain on those profits.
  2. There was FUDing all over the place. Some news have even been wrong, e.g. the news about South Korea banning cryptos. Reuters reported this and many news outlets followed. But, South Korea never intended this, this was mentioned by one politian only and after his statement, the South Korean minister of finance stated that SK does not plan to ban cryptos. However, Reuters (and the others outlets alike) missed to correct their previous statement. As far as I know, China does not plan to ban crytpos either, they are just trying to keep it more regulated. Remember, contrary to Europe and the U.S, for instance, in many countries in Asia tranformation of fiat money to cryptos wos not tracked. This probably led to increased money loundering.

@Eden: Aside from the fact that money is used for something, many new currencies offer additional capabilities. Substratum and Wabi are a few of those for instance.

@kewldude007 Hash rates are automatically adjusted such that every 10 minutes a new block is created. This adjustment happens every 10 minutes (Bitcoin) or after every single block (Bitcoin Cash).

@Shadowbane In my opinion cryptos in itself exceed the worth of addordable GPUs even though I really love gaming. But cryptos as currency offer so much more than convential fiat money that I think we have to learn living with these prices. That being said, many new cryptos are Proof of Stake and Ethereum for instance will (probably) switch at the end of this summer. This might as well lead to an overall decrease in GPU demand.

As a final note: I do believe that we have more or less hit the bottom. Which is why I have bought some BTC again a couple of hours ago. But then again, I might be wrong :slight_smile:

2 Likes
20
1 Like
21

Thanks :smiley:

Also as another general note. Right now, no crypturrency is fit to replace actual fiat money due to heavy price fluctuations. However, this might change in the not to distant future. But then again, BTC has other problems, for instance 7 transactions per seconds as a soft-limit. Sure this could be countered by an increased header size, but I think due to this bottleneck the future of BTC itself is limited (even after the release of BTC version x). Other currenciey perform much better, Nano is one of those (Although the Nano team has had some problems in the past).

But I think cryptos are perfectly capable to replace stocks and I also believe them to be fitting the face paced world around everything computer science related. As a result, people with little to no idea about what they are investing in, will always chase the market and ultimately lose money. Others again, will profit from this face paced environment.

The bursting of the bubble: In a way, this might need to happen, because there is a huge bunch of different crapcoins available. Many of these coins are used to create money and then abandon the sinking ship: bump and dump coins. However, there are also interesting and inovative coins that might be woth investing in. It is more or less similar to the dotcom bubble. Investing in a crap-company might have been a bad idea back then, investing in Google was something entirely different.

1 Like