Bitcoin: no angel investors, only Faustian bargains

The Something Awful Forums > Main > General Bullshit > Bitcoin: no angel investors, only Faustian bargains

Rectal Death Adept: Jun 20, 2018; by Fluffdaddy

Rinkles posted:

cross posting from the not-crypto thread

Yeah. When talking about the merge I had speculated some large portion of the miners would just go to another Proof of Work coin but since I don't really give a poo poo I never bothered looking into profit margins.

So, loving lol.

Ethereum Miners Are Quickly Dying Less Than 24 Hours After the Merge
https://www.coindesk.com/business/2022/09/15/ethereum-miners-are-quickly-dying-less-than-24-hours-after-the-merge/

quote:

�Graphics processing units (GPU) mining is dead less than 24 hours after the Merge,� tweeted Ben Gagnon, chief mining officer at bitcoin miner Bitfarms (BITF). The three largest GPU chains have very low profits, and �the only coins showing profit have no market cap or liquidity,� he added.

The reward for mining an Ethereum Classic block about 24 hours ago was ETC 0.0186484, or about 70 cents, but a check in the past hour found that�s tumbled to just ETC 0.00030658, or about 11 cents, according to data from Minerstat. Similarly, RVN miners could earn RVN 30.28478584, or $1.77 per block 24 hours ago, and in the past hour, that�s dropped to just RVN 0.82968431, or about 5 cents.

�As suspected, too many ETH miners switched over to ETC,� Ethan Vera, chief operations officer of mining services firm Luxor Technologies, tweeted on Thursday.

�Even running new generation hardware at sub 3 cent power is not profitable on ETC now � That electricity price is much lower than what households in the U.S. pay, and even to what industrial consumers like bitcoin miners pay in several parts of the country.�

Vera estimated that 20%-30% of ethereum miners have migrated to other networks, with the rest of them simply shutting down.

So a rough estimate based on the old hash rate was at least 15,000,000 GPUs mining ETH. This article is claiming 3,000,000 - 4,500,000 of them hit the low liquidity shitcoins so hard that mining with a GPU isn't profitable anywhere now. That would mean ~10,000,000 GPUs became available yesterday. I assume a large portion of them will be sold since they were bought specifically to make digital gambling tokens and now that's impossible unless you want to pay money to do it.

# ? Sep 16, 2022 02:37

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# ? Jun 3, 2024 07:43

Plan R: Oct 5, 2021; For Romeo

Nvidia stock fell off a cliff on the 12th. Maybe I can pick up a good card at a decent price.

# ? Sep 16, 2022 04:37

deep dish peat moss: Jul 27, 2006

Rectal Death Adept posted:

So a rough estimate based on the old hash rate was at least 15,000,000 GPUs mining ETH. This article is claiming 3,000,000 - 4,500,000 of them hit the low liquidity shitcoins so hard that mining with a GPU isn't profitable anywhere now. That would mean ~10,000,000 GPUs became available yesterday. I assume a large portion of them will be sold since they were bought specifically to make digital gambling tokens and now that's impossible unless you want to pay money to do it.

It's only a matter of time before a new grifter appears promising a coin with high mining returns to sucker them all back in, so I bet a lot of them just sit on their cards for a while waiting for that

# ? Sep 16, 2022 04:52

Ups_rail: Dec 8, 2006; by Fluffdaddy

Why not just go to mining butts?

I feel like SA miss the boat with crypto we coulda had a coin based on FYAD

# ? Sep 16, 2022 04:54

LifeSunDeath: Jan 4, 2007; still gay rights and smoke weed every day

Plan R posted:

Nvidia stock fell off a cliff on the 12th. Maybe I can pick up a good card at a decent price.

# ? Sep 16, 2022 05:03

more falafel please: Feb 26, 2005; forums poster

Ups_rail posted:

Why not just go to mining butts?

I feel like SA miss the boat with crypto we coulda had a coin based on FYAD

I don't touch the poop but my understanding is that mining butts isn't profitable without purpose-built ASIC miners. ETH was the biggest PoW chain that was minable with GPUs.

# ? Sep 16, 2022 05:04

Rectal Death Adept: Jun 20, 2018; by Fluffdaddy

Bitcoin mining went to ASICs a long time ago. The Butterfly Labs saga was when they developed the first ones and the technology has since made GPUs completely obsolete at that one specific task.

GPUs can still technically mine bitcoin but it's so unprofitable as to be pointless when there are hundreds of warehouses globally blasting terawatts of power into machines created for the sole purpose of mining bitcoin better than GPUs.

That's why when you see those "Bitcoin Mining Operation Destroyed" stories it's those little rectangular units that are completely useless for anything other than mining bitcoin specifically
https://twitter.com/CColezy/status/1417382320286302217?s=20&t=WzpDQPhRU0KEiur-8kMi3g

Rectal Death Adept fucked around with this message at 05:07 on Sep 16, 2022

# ? Sep 16, 2022 05:04

PhazonLink: Jul 17, 2010

Plan R posted:

Nvidia stock fell off a cliff on the 12th. Maybe I can pick up a good card at a decent price.

lol at stonks just being just as irrational, like hobbist gamers and video editors have probably been putting off upgrades because of digital tulip poo poo and now can probably buy some stuff in the near future? like christ.

same with stonk drops when the fed does the thing (interest rate increae) that they said they WILL be doing for months.

# ? Sep 16, 2022 05:07

notwithoutmyanus: Mar 17, 2009

PhazonLink posted:

lol at stonks just being just as irrational, like hobbist gamers and video editors have probably been putting off upgrades because of digital tulip poo poo and now can probably buy some stuff in the near future? like christ.

same with stonk drops when the fed does the thing (interest rate increae) that they said they WILL be doing for months.

They've been doing rate increases. We'll have another huge one next week most likely. Lots of tldr poo poo but basically our economy is going to have a few rough years ish, which would hopefully kill Bitcoin.

# ? Sep 16, 2022 05:33

sick of Applebees: Nov 7, 2008

notwithoutmyanus posted:

They've been doing rate increases. We'll have another huge one next week most likely. Lots of tldr poo poo but basically our economy is going to have a few rough years ish, which would hopefully kill Bitcoin.

You idiot, you buffoon, you absolute moron don't you know Bitcoin is the safest hedge against inflation?!?

# ? Sep 16, 2022 05:36

deep dish peat moss: Jul 27, 2006

All it will take is one Elon pump and dump to bring it back from collapse

# ? Sep 16, 2022 05:38

Ups_rail: Dec 8, 2006; by Fluffdaddy

sick of Applebees posted:

You idiot, you buffoon, you absolute moron don't you know Bitcoin is the safest hedge against inflation?!?

well if you invest bitcoins into cocain.

I miss dank

# ? Sep 16, 2022 06:22

The Lone Badger: Sep 24, 2007

Why is my windows taskbar showing me crypto market fluctuations and how do I make it stop?

# ? Sep 16, 2022 08:36

Hello Sailor: May 3, 2006; we're all mad here

windows knows you looked at the poop

# ? Sep 16, 2022 08:40

Foo Diddley: Oct 29, 2011; cat

The Lone Badger posted:

Why is my windows taskbar showing me crypto market fluctuations and how do I make it stop?

is it this poo poo maybe? i turned it off the first time i saw it

# ? Sep 16, 2022 09:08

The Lone Badger: Sep 24, 2007

Foo Diddley posted:

is it this poo poo maybe? i turned it off the first time i saw it

That was it thanks.

# ? Sep 16, 2022 09:48

Tunicate: May 15, 2012

also click search and disable the suggested internet searches

# ? Sep 16, 2022 09:53

Lord Stimperor: Jun 13, 2018; I'm a lovable meme.

repiv posted:

Only 2 addresses control 46% of all Ethereum�s PoS nodes for processing transactions post-Merge

is this good for ethereumcoin

deez entralize nuts

# ? Sep 16, 2022 10:01

Fishstick: Jul 9, 2005; Does not require preheating

Can someone explain to a financial idiot (me) why PoS would trigger SEC rules but PoW doesnt?

# ? Sep 16, 2022 10:48

Durzel: Nov 15, 2005

Quite amusing to see how many mining rigs have suddenly appeared on eBay.

They all seem to be trying to subvert eBay by listing them as a low BIN price but with terms in the description like "plzzzz don't actually pay, payment by bank transfer or crypto only" etc. Shame eBay aren't more on top of this kind of stuff.

# ? Sep 16, 2022 10:53

Foo Diddley: Oct 29, 2011; cat

Durzel posted:

Quite amusing to see how many mining rigs have suddenly appeared on eBay.

They all seem to be trying to subvert eBay by listing them as a low BIN price but with terms in the description like "plzzzz don't actually pay, payment by bank transfer or crypto only" etc. Shame eBay aren't more on top of this kind of stuff.

lmaoin' out loud at "FUTURE PROOF"

# ? Sep 16, 2022 10:56

Dr. Video Games 0031: Jul 17, 2004

Durzel posted:

Quite amusing to see how many mining rigs have suddenly appeared on eBay.

They all seem to be trying to subvert eBay by listing them as a low BIN price but with terms in the description like "plzzzz don't actually pay, payment by bank transfer or crypto only" etc. Shame eBay aren't more on top of this kind of stuff.

Meanwhile in the US

lol $3000 per 3090. may be a year late on this one

# ? Sep 16, 2022 11:06

carticket: Jun 28, 2005; white and gold.

Fishstick posted:

Can someone explain to a financial idiot (me) why PoS would trigger SEC rules but PoW doesnt?

Proof of Work/Waste is doing something in exchange for a reward, which in the long run ends up proportional to the amount of work.

Proof of Stake is doing nothing (I think you need to still run a validator node, but that's basically no work), and getting a reward, which in the long run ends up proportional to the amount staked.

The Howey test is used to decide if something is a security, with the following four points.

An investment of money
In a common enterprise
With the expectation of profit
To be derived from the efforts of others

So, PoW lacks the investment (I don't think capital equipment would count, but maybe), common enterprise, and the efforts of others. Mining pools add a common enterprise, but payout is proportional to your effort. Selling mining pool shares would pass this test and be a security.

PoS is still a little gray, I think. There's definitely an investment of "money". The way staking does selection of stakers to generate blocks could probably be considered a common enterprise. The last point is where I think it's iffy. You are selected proportional to your stake, as I understand it, but the validation/generation could be considered your work, thus failing the test. Staking pools (the analog to mining pools) remove the element of your work and easily pass as securities. I would imagine most staking is done via pools.

I am not an expert on this at all. I just learn what I have to in order to make fun of crypto in an informed manner.

# ? Sep 16, 2022 11:16

Somfin: Oct 25, 2010; In my🦚 experience🛠️ the big things🌑 don't teach you anything🤷‍♀️.; Nap Ghost

I think this is just the terminology "cryptocurrency" coming around to bite them in the rear end

Up until now it's been monopoly money that you got by running huge expensive monopoly money printers but you couldn't do anything with it directly, you could just swap the resulting monopoly money around for goods or real money or monopoly money from other games.

Now it's monopoly money that you can put into a big pool to have a chance of getting more monopoly money back out, which pushes it a lot further from being monopoly money and a lot closer to being casino chips.

# ? Sep 16, 2022 11:36

greazeball: Feb 4, 2003

PITY BONER posted:

My predictions were all wrong and I feel immense shame. BTC dropped to the $19k range this morning, but will probably move back up shortly. I am a fraud, a liar, a cheat, and I can't predict poo poo for poo poo. I think this means I would make a great crypto guru.

Charlie Kirk gonna be so mad when he finds out how much smaller this guys face is compared to his.

Edit: He looks like human Shrek, too. LMAO