How the Cryptocurrency Collapse Brought Video Cards Back to the World How will demand for video cards skyrocket and prices return to normal?
People have never invested as much in cryptocurrencies as they have in the last two years. Media hype, low lending rates, and a plethora of speculators have pushed cryptocurrency prices to unprecedented heights. At some point, the situation started to resemble a gold rush. Gamers and designers didn’t need to use GPUs because the equipment they needed was instantly available for mining digital coins. However, the holidays for cryptocurrency exchanges are coming to an end. Bitcoin’s value has fallen 58% since early 2022, sparking discussions around crypto regulation around the world. In addition, electricity costs for mining have increased significantly.
Why was the video card insufficient?
In 2010, few people took cryptocurrencies seriously. However, some people call the new gold “crypto”. Mining it required a powerful computer. The process of mining cryptocurrencies is called mining. The computer computes a complex algorithm and as a reward receives a certain amount of cryptocurrency that can be sold.
Global demand for alternative payment systems is significant, especially when countries do not control them. The idea of digital currency has always been popular, and Bitcoin rates are constantly rising. Over time, other cryptocurrencies, so-called altcoins, such as Tether, Ethereum and Litecoin, appeared. Each has technical characteristics and rates. Comparing cryptocurrencies to precious metals, 2020 had a gold rush. What’s causing this?
As interest rates on loans fell, traders aggressively invested with leverage, further inflating the cryptocurrency exchange bubble. Large funds started joining the wave, trying to buy cryptocurrencies and sell them at higher prices. From January 2020 to January 2022, the price of Bitcoin rose from He 7.3 thousand to He 41.6 thousand and peaked in November 2021 above He 6.4 thousand. For this reason, the Western media called Bitcoin “the best asset of the last decade”. Bitcoin has an average annual return of 230%, ten times more than an investment in the Nasdaq 100 Index of 100 American technology companies. At its peak, Bitcoin’s market cap reached 1.2 trillion, more than Tesla.
Miners around the world bought video cards to expand their cryptocurrency farms. The capacity involved in cryptocurrency mining is measured by hash rate (the total capacity of computers involved in mining). In other words, Bitcoin’s hash rate doubled from 2020 to 2022. Speculators also formed demand for video cards. I sold it to a miner for double the price. Miners bought video cards at any price because they were still making big profits. On the other hand, gamers for whom video cards were created and graphics his designers could not afford them.And how to earn new cards Mobilene Casino They had to buy older models, which also gradually increased.
The video card market is stable.
In 2022, the global economy began to slow and central banks in advanced economies began to raise interest rates. Investors responded by selling riskier assets. Cryptocurrencies are purchased primarily to resell at high prices rather than for their intended use. As their further growth became questionable, investors began to reduce their portfolio share. The sale triggered a decline in cryptocurrency rates. In addition, since “virtual currency” assets are speculative, they are sensitive to information stimulation, and many assets will exist after 2021. Governments in developed countries have started taking steps to regulate cryptocurrencies. China, which has the largest number of mining farms, has banned operations with cryptocurrencies. The debate over cryptocurrency regulation continues in the United States.
At the same time, the world began to debate the environmental impact of mining. Thus, one study compares the climate damage of bitcoin mining and oil refining. First, cryptocurrencies are getting cheaper. Since the beginning of the year, the Bitcoin rate has fallen 58%.Try your luck if you crush bitcoin internetSecondly, electricity bills are increasing worldwide and account for 90% of miners’ costs. Third, a year ago, miners used a record number of cryptocurrency mining equipment, riding a wave of high prices.
The final chord was the recent update of the Ethereum cryptocurrency, the second largest in terms of market capitalization after Bitcoin. After this currency’s architecture changed, video cards were no longer required for mining. New coins are issued using a different system without computers solving complex algorithms.