The last three months of cryptocurrency market movement is unlike anything the world has ever seen before. Ballooning upward over $600 billion market cap in a matter of months, all-time high valuations brought dreams of lambos to life.
All time high valuations for cryptocurrencies, from Bitcoin to Ethereum, also made mining more profitable than ever before. Some saw it as an opportunity to convert their gaming PC to a part-time mining rig. Others invested tens of thousands of dollars in Nvidia graphics cards in the hopes of making big profits.
This caused a bit of a quarry for the average PC gamer as graphics cards sold out at every retailer, causing double prices on the second-hand market. Thus, graphics cards have been unaffordably inaccessible since early December, making for plenty of horror stories on social media.
Then things came tumbling down in mid-January. Initially, it was caused by fake news FUD regarding South Korean regulation, but was later supported by other alarming stories, including the dramatic death of Bitconnect.
During the past 48 hours things have hit dramatic lows, nearly reaching pre-November market capitalization with Bitcoin under $6000, a 70%+ drop from its all-time high.
While investors aren't too happy, the good news is PC gamers might soon finally be able to find a graphics card to buy. Many are predicting that second-hand cards will flood eBay once miners find themselves unable to outpace electricity costs with their costly investments.
The general rule of thumb is that mining Bitcoin is only profitable when it's valued at over $5000, which isn't far from where we're at. Though this number is just a general estimate, it's one that many miners consider when deciding whether or not to bother running their mining software.
If we were to see a mass exodus of cryptocurrency mining, the prices of second-hand cards could be surprisingly low as supply oversaturates the market. Those who have been patient through this dark period would be rewarded.
For now, things appear uncertain for the market as it struggles to find stability in a vast sea of speculation. This morning cryptocurrencies jumped up substantially following a positive SEC press conference. Several tens of billions of dollars have found their way back into the market, though it's unclear if they will stay for long.