GPU MINING Gear Price Crash (Ethereum 2.0 Crypto Mining Effects)

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right now today gpu markets are irrational 
what does that mean for you if you're a gpu   miner especially if you're a gpu miner on eth and 
especially if you intend to go long term on mining   after eth 2.0 comes out what does this mean for 
you so strap in let's dive into all of this here   so let me go over why i'm saying that the 
gpu used market is currently irrational   the used prices for gpus that i've been 
talking about on here for the past couple of   you know maybe months here has been something 
that i've now researched somebody clued me and   they said look at the new prices that have 
just come out i looked at new prices this   is actually been going on for about a week that 
the prices have actually crossed the threshold   of where people are selling their used gear for 
that's irrational nobody should be buying a used   gpu that's the exact same gpu that they 
can buy new for the exact same price that   doesn't make sense so let's talk about 
that irrationality i've seen this before   and i'm going to talk to you about when i saw 
it before what kind of things happened then   this was a historical time that i saw it i think 
that it will be interesting we're also going to   talk about the hashplosion we're going to look 
at youth 2.0 timelines and we're also going to   examine in depth those local and new markets all 
right so i did a video yesterday on the eth merge   we talked about some of the things that came 
out there is a delay that is imminent it sounds   like for the 2.0 merge coming down the pipeline 
this is going to be that's fairly significant   now i thought it was funny uh a lot of people 
actually had no idea of the historical context   of eve delaying things eve is like the ethereum 
foundation the people behind eat the core devs   they are epic at delaying things so i did a thread 
on twitter and i talked about some historical   perspective gave a lot of links regarding the 
many many times that eth has actually talked about   the merge releasing the merge missed timelines 
shifted the goals so do check this out also links   to all this stuff in the description below i also 
showed off some of my old gpu mining rigs awesome   led lights i liked those lights a lot i'm gonna 
definitely be getting some for the chia farm   uh so that was in the conference call that the 
merge has been talked about now being delayed it   looks like they want to shift the timeline between 
the test net releases from one week to up to four   weeks and that could add on several months all 
right so let's talk about what somebody clued   me in on with the irrationality between those 
markets 3080 tis on newegg and we can see that   we've got the vision rtx 12 gigabyte card 3080 ti 
12.99 not a bad price right here's where you get   a disconnect you've got 1200 for a not great card 
here uh you've got some other cards that are right   up there past that price point 13.25 so things 
don't make sense that's an irrational market   especially when considering you can actually get 
a vision rtx for 12.99 here on best buy also links   to all this stuff below also links to amazon let's 
see what the local markets look like for 30 80 tis   complete disconnect from reality this is not 
a 3080 ti this is a 3080.

The 3080 ti that we   see here 1400 and then up to 1500 this was 
the pricing as of weeks ago let's check out   facebook maybe facebook marketplace is a little 
better nope not at all this is an irrational   marketplace now i was here and i was like holy cow 
they're actually wanting a thousand dollars for   30 70 ti so let's check out 30 70 ti's okay go get 
yourself a 30 70 ti for today today for 850 off of   best buy on ebay not even close to that price uh 
so people have a disconnect let's check craigslist   real quick here and no so what does this mean 
this means people have not reflected the price   realities of the availability of new stock in 
what they're selling used so the recapture of   your capital expenditures is something that a lot 
of miners out there think about especially when   you have a horizon and timeline that you know they 
were talking about june just a couple months away   and now they're talking about possibly november 
this is classic this is they've done this so many   times so don't be surprised when this gets shifted 
again uh but this makes planning really hard   because definitely once they do do youth 2.0 then 
it's all in uh then there's you know no mining   ethereum anymore that is an induced hashplosion i 
don't know if that term has been come up with yet   but i am definitely using that term i thought 
of it yesterday and i thought wow this is a   hashplosion for whoever is going to be receiving 
all of that network cash rate and so i thought wow   this is actually strategic almost because they're 
competitors that might be coming up that might   be developing really cool ecosystems themselves 
not necessarily the web 3 people not necessarily   people dealing with other proof of stake but 
certainly people dealing with gpu mineables   this hashplosion may not be something that these 
people want to have happen to their chain to have   all of these people come in and possibly destroy 
the economics of it is probably not what they want   to see happen so what happens when all this hash 
rate moves from ethereum to x to y to z a lot of   people are talking about a lot of people have 
the same feeling not a good thing i don't know   send out below let me know what your thoughts are 
on that i think we will see a point where we have   a reality check on used prices for gear we haven't 
seen that reality hit the wider market space yet   now let's talk about when that did happen in the 
past so in 2018 there was going into this time   frame kind of right around where we are right 
now march april there was a massive sell-off of   people's gpu equipment that happened as a result 
of this was just the price trending that we saw   happen with ethereum and a significantly sharp 
downward trend now by the summer of 2018 it was   absolutely a market that was just saturated with 
graphics cards on the used marketplace people were   scooping those up avoiding buying new graphics 
cards that led to nvidia having like a pretty   bad quarter there was some talk about the crypto 
hangover and all sorts of stuff from their ceo at   the time so that had a lot of ramifications 
because there was a glut of used gear that   went for i mean drastically cheaper prices we're 
talking like a third of what people were paying   for them just a few months ago now those were 
inflated prices not quite as inflated as what   we've seen this go around but definitely still 
very inflated and so way under msrp for cards   that had just actually come out in many instances 
so what is going to happen this time whenever the   market reality hits that there's only x number 
of months around people will make a decision that   decision will be either i'm staying and mining and 
i will see what happens or it's time for me to get   out there's people definitely making the choice to 
get out right now and the economics of that still   are fairly in their favor at this moment like i 
mentioned the pricing reality doesn't seem to be   reflected yet in used markets versus new markets 
but the new markets are going to be bringing   chips on board at a price that is not going to be 
as high as it was in the past the availability is   going to be much greater because people see the 
writing on the wall with the merge so they're   not buying brand new gear with the intention 
of setting up a gigantic farm necessarily so   at this point there's an inflection i think we're 
at an equilibrium point where we're probably going   to see some pretty dramatic prices happen on the 
used markets as that reality hits them also that   there's new gear available and i think the demand 
is probably going to shift very fast from people   that are traditionally buying it at a higher price 
this is probably a lot of people that are in the   gaming sphere looking for a graphics card and 
they're looking at hey i can actually go and get   that graphics card over on a new marketplace i got 
links to a crazy one that just happened on amazon   and i mean it was very cheap for a 30-70 ti so 
i mean i think that probably is something that's   going to be in effect that we'll we will see 
increase that will limit the availability of   buyers on the secondary market places that are 
intending to use it for that purpose that means   who's going to be buying them on the secondary 
marketplaces probably people that are actually   like interested in continuing their operations as 
a miner that probably will happen i know that i   kept going with just the gear that i had for quite 
a while after that and you can only mine so long   in the negative before it really just you know 
eats a little bit too much money so let's talk   about that particularly let's take a look at the 
breakdown of where we're at today on the different   cryptos we've got our hashrate set up here we've 
got seven 30 80 ti's i think we've seen that   that definitely fits inside a blueprint where you 
would be able to price that out at the price that   they actually are this is again targeting that ten 
thousand dollar price point you're looking at 2183   on ethereum today now like i mentioned there are 
like conflux ergo flux faro cerro these are all   ones that have been up there i mentioned briefly 
ethereum classic last time that is something that   definitely is a potential for absorbing some 
hashrate can any of these absorb the hashplosion   that will be coming towards them that is a huge 
question i cannot tell you whether or not they can   uh let's take a look at asics and how asics are 
doing today again that is at the 13 cents per   kilowatt hour asics today ten thousand ish 
dollar investment looking at 110 tara hash   250 watts ouch that's a lot of electricity and you 
can see that you are getting about 12.48 cents uh   and that is on bitcoin large amount of that still 
going towards the electricity bill and let's take   a look at chia again 13 cents same price point and 
you're looking at about 13 38 on chia today so and   that is at us average electric electricity rates 
which is 13 cents per kilowatt hour currently you   could be higher you could be lower definitely 
if you're higher this affects you quite greatly   and i've been getting a ton of feedback from 
people in the eu telling me that they are   higher than 0.25 cents per kilowatt hour and that 
they're having tremendous rate increases year over   year and that when their contracts are expiring 
they're getting drastically higher rates so i   guess there's a lot of contractual basis for how 
you buy your electricity in the eu it sounds like   those being negotiated rates at a fixed price 
and then those renegotiated at a periodic   interval maybe a year or something like that 
maybe a couple of years i don't know exactly   the time frame but that is something people 
are telling me in the uk 40 cents equivalent   us dollars seems to be what they're hitting 
what happens if you're looking at 40 cents   and so we're gonna examine what that looks like 
if we take that hit here and so we're gonna see   what that does to our earnings on a daily basis 
and we can see that is a pretty steep hit a lot   goes towards that electricity bill at this point 
nine dollars and sixteen cents on ethereum uh   at 40 cents that is a a huge reduction there 
um let's check out the asic here and pop that   in there with 40.

pexels photo 8358149

And again this is the s19 pro 
that we're looking at here for this comparison   and yeah you're losing money daily there and 
that is a fair amount of money to lose daily   i'm not sure you would stick at that point 
uh that's gonna add up over the course of a   month especially if you've got multiple rigs 
and let's check chia and i think you'll see   why exactly i like chia and that right there is 
talking about why i like chia 10 and 38 cents so   again you see why chia with its incredibly low 
electricity footprint is just still going to be   viable for some time into the future also you're 
looking at a nascent technology that from its   inception does not have any goal to become a proof 
of stake and as a matter of fact the founders are   very vocal about not becoming proof of mistake 
so that is where i look at chia and i think   longer term better play if you are interested in 
going big but you don't want any of the overhead   you should hit up evergreen miner talk to dylan 
over there because they do that that's what they   do i am an affiliate of them so i make some sort 
of a commission off of the sale of one of those   units but if you're looking for a pepe bite unit 
and you don't want to actually plot it yourself   you might have incredibly high electricity rates 
then that's something that you should consider   links to all of this stuff in the description 
below it's enough let me know what you guys are   thinking so i think there is a day of reckoning 
coming for people that are gpu miners currently   that are thinking of getting out and the timing 
of that is going to be critical this becomes   incredibly difficult with shifting timelines 
around that everybody wants to optimize their   profit that's mining cryptocurrencies especially 
the larger your farm especially the larger your   investment retaining that if you are getting out 
is one thing if you're staying in that's one of   the things that you want to be still possibly even 
growing during that time period and you're hoping   for that negative effect so that you can scoop 
up those really cheap graphics cards send off   below let me know what your plans are i find this 
very interesting we're seeing something that we've   never seen before in cryptocurrencies there's been 
a sustained period of very high market activity   that is exciting that tells me that there is a 
level of acceptance there's a level of adoption   and there's a level of understanding of 
cryptocurrencies that even with bad news   these cryptocurrencies just continue going and 
that is talking about the future and that is why   you should hit subscribe and also ring that bell 
so that you get notified when we talk about the   future everybody you have a great rest of your day 
and we'll see you guys next time be sure to hit   like and subscribe and check out these videos for 
more information on your favorite crypto topics

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