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Why did crypto crash this year?

i'm going to make the decision whether or not to buy a new GPU for gaming (not mining) this month, based on your answers.

600€ is more than i'd ever spend on a GPU in a normal situation, but i'm worried i won't be able to get a 40 series card and be stuck with my old RX470 for another 2 years.

 

i really don't know too much about crypto, but i speculate that the release of the next GPU generation will start another mining and scalping boom, just like last time and that GPUs will be basically unavailable for gamers again.

i heard that the big coins can't be mined efficiently on GPUs anymore and that miners will have to switch to specific mining cards, or chip or whatever. i don't know if this is true, and that's why i'm here.

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The whole economy has gone down so it makes sense as to why crypto has been trending down. As for mining, yes you are correct the new GPUs will always be scalped by miners to mine alt coins. These are different coins unlike Bitcoin which people use ASICs for. Which is what you were referencing as some algorithms that are not ASIC resistant eventually have one created. This is currently what happened with ETH mining

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Just keeping this here as a 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  • 2 weeks later...

I am expecting another mining boom when new GPUs are released. Maybe not as crazy as the 30 series launch sense Covid made that a lot crazier than 20 series launch. I do think now is a good time to buy if you are wanting to get a newer card.

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  • 2 weeks later...
On 7/27/2022 at 5:59 AM, j1philli said:

I am expecting another mining boom when new GPUs are released. Maybe not as crazy as the 30 series launch sense Covid made that a lot crazier than 20 series launch. I do think now is a good time to buy if you are wanting to get a newer card.

yes i think so too. i bought a 3070 since i posted this.

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On 7/12/2022 at 8:43 PM, BuckGup said:

The whole economy has gone down so it makes sense as to why crypto has been trending down.

Specifically, a big contributing factor that keeps crypto prices depressed is the fact that central banks around the world are increasing interest rates to curb inflation.

 

To keep a long story short, this has the effect of disincentivizing risky investments since borrowing money becomes more expensive. In contrast, easy facilitates risky investments. Crypto is the hallmark of what can be considered a risky investment, so when interest rates go down, crypto reacts with extreme fear.

It's entirely possible that I misinterpreted/misread your topic and/or question. This happens more often than I care to admit. Apologies in advance.

 

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2 hours ago, CT854 said:

Specifically, a big contributing factor that keeps crypto prices depressed is the fact that central banks around the world are increasing interest rates to curb inflation.

 

To keep a long story short, this has the effect of disincentivizing risky investments since borrowing money becomes more expensive. In contrast, easy facilitates risky investments. Crypto is the hallmark of what can be considered a risky investment, so when interest rates go down, crypto reacts with extreme fear.

also collector market(many sectors of it) are all over the place atm. normal its extremely mellow. but last year and this year. its been a mess(i deal in some markets).

 

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