Gamers all over the world have been waiting almost two years for a crypto crash to occur so they could get their hands on a GPU at a reasonable price. Though it seemed like that day might never come as currency after currency went to the moon, that day has finally arrived. Cryptocurrency is in a full-blown meltdown right now, with every major type of currency bleeding red. Though the “volatility” in the crypto markets started a little while ago, it all came to a head in the past week. All major crypto currencies have taken a nosedive, with the market losing $200 billion of value in one day this week. If you’ve got your retirement in crypto, our condolences. If you’ve been waiting on buying a GPU though, it could be your lucky break.
Bitcoin (BTC) is currently trading at the lowest amount since December of 2020. It’s lost over 60 percent of its value since November 2021, when it was over $65,000 per coin. It’s currently hovering around $28,700 as of this writing. It was over $30,000 just one day ago, so its price is fluctuating wildly right now. Bitcoins aren’t the only type of coin created by crypto miners, but the tentpole currency is seen as a bellwether for the industry. Ethereum, which has been more directly responsible for much of the GPU shortage, is also seeing significant fluctuations. It’s below $2,000 currently, which is the first time that’s happened since June 2021. It’s lost almost half its value in the past month, which must be making a lot of miners very nervous.
The performance of Ethereum for a one month period ending on 5/12.
One of the leading causes of the recent freefall is the devaluation of stablecoin TerraUSD, or UST. It’s designed to trade at a 1:1 ratio with the US dollar. According to Techspot it’s an algorithmic stablecoin that’s been trading at approximately $1 for for most of the year. This week it crashed to $0.29, causing a panic. Its $45 billion market cap was reduced to $5 billion in record time. Terra has a “support coin” named Luna that has also cratered. It’s gone from $86 a coin last week to just $0.20. The situation has gotten so bad that the subreddit for Terra and Luna coins has a stickied post with national helpline numbers people can call if they’re contemplating harming themselves. In addition to the crash of Terra, the war in Ukraine and inflation are also seen as influencing the meltdown.
For now it’s hard to say what this means for the future of cryptocurrency, both as a viable medium for monetary transactions, and for investing. At the same time, there’s probably a lot of people out there that think this is the best time to buy. It will certainly buoy the market for GPUs though, as we’re expecting a flood of “lightly used” mining cards to hit the market soon.(Do not buy a used mining card if you value your GPU’s longevity – Ed). It might also help reduce prices of GPUs in general. There’s been a supply-and-demand issue for ages now. Miners and bots have sucked up the entire GPU supply, raising prices in the process due to scarcity.
The situation is still unfolding so it’s hard to understand right now what impact it will have on the GPU market. We certainly feel bad for the people who lost money investing in crypto, but it was always a risky investment. The “Doge Coin Millionaire” himself put it best, in reaction to the latest implosion. “It’s crazy to think you can invest in a “sound” crypto project with all the bells and whistles of utility and an incredible team behind it like #LUNA and still get completely REKT. No one knows anything.”
Read More:Crypto Crash: Bad News For Investors, Good News For Gamers – ExtremeTech