Cryptocurrency driving up gpu prices

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Prices up cryptocurrency driving gpu total possible ethereum addresses

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Mining the genesis block of bitcoin which was block number 0 also had a reward of 50 bitcoin. Like a database, Bitcoin needs a group of computers to store its blockchain or data. Bitcoin documents all the transaction details in the blockchain.

To document the transaction miner has complete complex math which needs a really good processing unit or power. What is relation between Cryptocurrency and GPU? Ok, But what does any of these have to do with GPU. Well here is things get a little convoluted. Bitcoin was released as open-source software meaning anyone can copy, modify or just make a new version out of it.

Now bitcoin uses the SHA algorithm and as I mentioned before anyone can take it. This has led to the creation of thousands of other cryptocurrencies. To be honest most of them are useless but some however modified the software in a useful way. Ethereum, Lite-coin, Dogecoin are the latest in line. Each one offers a different take on block rewards.

Of course, block rewards exist so that people will be invested in mining. Mining also secures the Bitcoin network. In simple terms, the difficulty of mining a block scales based on the total speed of the network which is known as hash rate. If anyone wants to hack bitcoin he needs to control 51 percent of the hash rate to succeed.

So the more people running the hashing algorithms, the more secure the network. It will be harder for hackers to change data. In the first year of the bitcoin journey, it had tens of millions of hashes per second, after that billon then trillion per second. Right now it has few quintillion hashes per second. The reason hashes gone so up because the processors used for hashing have also gotten much faster. Not because more people are participating.

Why GPU prices are rising? What are ASICs? Its full form is Application Specific Integrated Circuit. Here is a picture of that. Ok great. After just a couple of months, I parted out the mining rig and sold the GPUs for a nice profit. Even in , the GPU supply chain had trouble keeping up with spiking demand from cryptocurrency mining. ASICs were vastly superior to GPUs in that they used less power and produced exponentially higher hash rates, which determined mining speed and profitability.

Then I waited. And waited…and waited some more. However, ASIC manufacturers were new to the business. But Butterfly Labs had no such software. I was bummed to see that mining competition had spiked with the introduction of ASICs. I removed the cover and used my box fan trick and a slight overclock to snag a couple of extra percentage points. But competition kept climbing.

In less than a month, I was earning less than 0. Mining with GPUs made sense again. But I was frustrated with how much I had to pay. The was a mid-range GPU and was already somewhat outdated in The GPU demand cycle had begun again and I was behind the curve. However, this setup meant one of the RX s was hanging precariously out of the case. Coincidentally, the perpetually rappelling GPU maintained a lower core temp because it was hanging outside of the case.

Happy accidents. Profitability Declines Again The decline in Ethereum profitability has been slower. I no longer had a basement to spare, so my mining rig lived in the corner of my bedroom. My wife was not happy with this arrangement. I soon parted with my Dell and sold the GPUs, but this time for a loss. The Cycle Continues In late , crypto winter was breaking.

Global adoption of cryptocurrencies had grown. But a chip shortage, fueled by the pandemic, meant the supply of GPUs did not grow with mining demand. Prices on second-hand markets like eBay exploded since no one could find a new GPU in stores. There was a clear increase in auction prices in February