Crypto and Video Card Availability, what goes up must come down

Discussion in 'General Chat' started by DQ, May 5, 2021.

  1. DQ

    DQ Well-Known Member

    This just occurred to me and I think it's an interesting thought.

    As we all are painfully aware GPU's are impossible to find, especially at any sort of sane price due mostly to the crypto situation. Crypto historically is VERY volatile. I personally believe this is really due to the idea that crypto was never created to be an investment strategy or get rich quick scheme. At heart it is simply a way to hold or move money without banks or the government being involved.

    In any case, as crypto is volatile I believe it will once again come crashing down and in a big way. What will be the fallout of that? Millions of cheap GPU's on Ebay from miners trying to recoup costs which will cause the scalpers to also dump their inventories. I believe this will happen very quickly and nearly all at once.

    Just a thought.
     
    RedFox 1 likes this.
  2. RedFox 1

    RedFox 1 Super Moderator

    Very interesting analysis, but I do not think its going to come to pass, my thoughts are that crypto is in the first inning, by year's end, Crypto will be a solid investment utility. With BTC and Eth running away from the pack. I have no investment in it but if I did, I would be very confident about the future, it's too late for me to invest for the future even if I could. I am elderly and have had a few chances but they never panned out.
     
    whatever_gong82 and DQ like this.
  3. DQ

    DQ Well-Known Member

    I am going to disagree with that investment part but please understand I do so under the guise of an interesting discussion and not an argument of any kind.

    As I had stated initially, in my opinion, the concept of crypto (and it's true power) is about being able to hold and move value without oversight or control by governments or big banks (and sometimes those are the same entities).

    Yes you can make profit off it but that's really only in the early stages and or only when there is a large uptick in available processing power since crypto has a built-in scarcity mechanism so that the more of it there is there is the harder it is to create. The problem with all that is it volatile as all hell. So the risk vs reward gets real weird on that one in my mind.

    And I personally find it insanity to use insane amounts of real resources to "create" something that does not actually exist.

    If the real value of crypto was profit you would see the powers that be jumping in with both feet, instead they are frothing at the mouth trying to regulate it because it's mechanism represent something the government cannot track nor control.

    My 2 cents on it.
     
    RedFox 1 likes this.
  4. RedFox 1

    RedFox 1 Super Moderator

    I really don’t have that much knowledge when it comes to it, but I do however listen to financial news, I see who is investing in it, and from where I stand I see it as a store of value. Something like gold. BTC alone has a value of 1.1 Trillion. And more and more big companies are investing in it for future profits. You can buy a Tesla with bitcoin you can buy computer parts from newegg with bitcoin and many others things. Something is only worth what somebody else is willing to pay for it. I see this is the new monetary society.Like I said I am no expert but I do believe that the new era is coming and we are only in the first inning. Great conversation.
     
    DQ likes this.
  5. DQ

    DQ Well-Known Member

    Well it would be a new monetary society for sure but the government will end up regulating it into oblivion. And somewhat to my point notice all the things you listed you can purchase with it. So again, it's power is it's ability to move value not not so much make money off of holding it. But again, that is just my opinion. People are rushing to it out of greed while disregarding the reason it really exists.