I wrote a post about a month ago talking about how altcoins are dying and now it seems as though they are almost completely dead. At the time there was a small profit in most scrypt based coins – but it was negligible. The price of altcoins was gradually diminishing, no thanks to the sheer number of new (mostly scam) coins that saturated the market. The developers were the only real winners with these new coins in the long run, but an unfortunate consequence of the devs’ greed is that the entire altcoin phenomena is now in peril.
Perhaps it will recuperate one day, but it seems doubtful. The markets were flooded with useless altcoins that offered nothing new in terms of innovation – dooming them from the offset. Sure, scrypt-jane and adaptive N coins offered a new algorithm, though they tended to require specialized miners that put lots of people off. Even for those who could be bothered re-tuning their GPUs, the profitability didn’t last for long.
On top of the declining value of altcoins, bitcoin’s value was also diminishing (and Virwox remains my exchange of choice since it’s the most secure and instant), although the latter has a reputation for bouncing back. Most altcoins were made for short term gains and even those with a solid launch and avid followers were only successful as long as they were profitable. Now nothing is profitable unless you have free electricity, and even then it’s more feasible to just buy them rather than devote time to maintaining a rig.
People are flocking to eBay to sell their GPUs, with 7950s as low as £150 in the UK and $200 in the US, but I predict they will have to go a lot lower as miners with huge rigs (some with several hundreds GPUs) frantically try to recoup their expenses. I sold my 7850 a month ago when altcoins were only slightly profitable, mainly because they were going down in value each and every week. I got lucky and sold it for 90% of what I paid. My 7950 is kept for gaming, something that might give other sellers hope since Elder Scrolls Online was just released so perhaps they will find buyers.
Crypto Rush was the latest victim of a hacking scandal and that hasn’t helped matters. People are losing faith in cryptos altogether because of all the hacks and scammers. Be it the devs flooding the market with worthless coins or the exchanges run by idiots and/or scammers. This is an unfortunate mess for the entire crypto world and one that looks unlikely to recover to its former glory. The future of bitcoin has never been in doubt, even after Mt Gox’s collapse. I suppose litecoin also has a future, but the difficulty is so high now that nobody really wants to mine it. Why mine something that costs more electricity than it’s worth? Just buy them.
My advice in the last post was to mine for fun because it’s not going to be profitable much longer. My advice now is the same except that it’s definitely not profitable anymore!