• Taldan@lemmy.world
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    2 days ago

    Profitability of Bitcoin mining is dependent on the value of Bitcoin

    No it isn’t. It’s driven by the supply of miners and demand of transactions. Value of bitcoin is almost entirely independent

    ASICs, which are used to mine Bitcoin are using very different chips than modern GPUs. Ethereum is the one that affected the GPU market, and mining is no longer a thing for Ethereum

    A massive Bitcoin spike would not affect the GPU market in any appreciable way

    Crypto mining is pretty dumb, but misinformation helps no one

    • Tinidril@midwest.social
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      1 day ago

      ASICs and GPUs do share significant dependencies in the semiconductor supply chain. Building FABS fast enough to keep up with demand is difficult and resource constrained, both by expertise and high quality materials.

      You are wrong about the market value of Bitcoin’s impact on the profitability of Bitcoin mining.

      https://www.investopedia.com/articles/forex/051115/bitcoin-mining-still-profitable.asp

      Another thing to consider is that many coins still use proof of work, and an ASIC designed for one might not work for others. Some miners (especially the most scammy ones) choose the flexibility to switch coins at will. That doesn’t change the fact that ASIC now dominates, but GPUs do still have a share, especially for some of the newer scam coins.