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Bit coin and Graphics card prices

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  • Graphics
  • Graphics Cards
  • Bitcoins
Last response: in Graphics & Displays
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March 1, 2014 6:06:21 PM

I read on another forum that graphics card prices rose because of this bit coin mining thing. Now that the bit coin currency could be on its downfall, will graphics card prices fall as well? I don't really know much about bit coin. But people have said they purchased like hd 7950's for $180 but retail price is $300 and up. Was there ever a direct correlation between Graphics card prices and bit coin mining?

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a c 429 U Graphics card
March 1, 2014 6:09:50 PM

They might, if they do a select few would.
The 7950 was discontinued so the prices will stay up, unless nobody is buying then they will drop. But supply is 0 and demand is up.
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a b U Graphics card
March 1, 2014 6:14:52 PM

The bit coin issue is only speculation there are still other currency's and trust me when i say this most people mining bit coins are not using traditional GPU's to do it. they us a risk processor and a specialized application. What people are really using the GPU's for is Light coin and all the other various types of bit coin variants. there are at least 10 of them some more popular than others. bit coin would be like gold light coin would be silver and then there are the others that are up and coming types. all have varying values.
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March 1, 2014 6:18:57 PM

ok thanks guys
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a b U Graphics card
March 1, 2014 7:16:34 PM

Coin mining is using the processing power of a GPU to develop the most tightest form of encryption that is unique (like your fingerprint, eye scan or SSN) to that single coin to be used as a form of currency. Since only the buyer has the 'key' the ability to decrypt that 'coin' in a electronic purse would be hard, but if there is a commonality between coins then decrypting gets easier, and if the 'same' coin is repeatedly used, then more time to decrypt the coin exists.

So there is a constant demand for a 'new' encrypted coin, that requires more and more complicated formula to create a unique coin. This processing is what the GPUs are very good for, as compared to RISC CPUs, and AMD makes the best performance.

Supply and demand, everyone wants to let the PC sit there and 'make coins' for very little cost and be 'paid' a handsome price (based on the value of the coin currently) for the little effort, everyone buys more and more GPUs, less and less GPUs available for others to buy and use to 'game with'. Less GPUs around the 'market' raises the price till people slow down buying them (pushing the value / cost higher for the demand to make more and more profit on a harder to find item, hence why gold and diamonds cost so much for example).

Now that the processing has changed, and there are alternative E-Coins out there, there is still the 'websites' and college kids passing around the 'get rich quick for very little money' pyramid scam and still driving up costs while it is nearly impossible to 'single handedly' generate the Bitcoins unless your entire Dorm room was filled with systems.
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a c 133 U Graphics card
March 1, 2014 8:39:13 PM

Bitcoin is a particular Cryptocurrency, not a catch-all term like the media loves to think so. The particular coin in general that has caused AMD GPU's to go up in price is Litecoin, and to a lesser extent Dogecoin I think.
Mt.Gox collapsing I suspect wont make too much of an impact to the price of AMD GPU's since they primarily dealt with Bitcoin, which the guys buying up 290/X's arent concerned with.
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