New mining ASIC for Ethereum is as fast as 32 RTX 3080s

[lexluthermiester]

I don't think it'd take much more than what they already officially apply. It's treated as capital gains.

40% capital gains would work!

 

[MentalAcetylide]

What good is a law you can't enforce? I have a feeling you don't like the idea of auditing energy bills, home inspections if they get too high, and the fact that China already tried this and it completely failed even in their totalitarian environment.

Which means yes, to enforce such a bill, we'd literally need to be more invasive than China. Can I get a "gg" guys?

Such a bill if it ever passed, would be useless and toothless in enforcement. It would solve nothing.


I really don't feel criminal has been a major element for some time, and recent studies have been pointing that way too.

Most of the recent movement has been big banks and companies buying in large scale to facilitate their own sort of projects, probably digital currency type of something somethings if I had to guess. There's a lot of chatter about "stablecoins." This has absolutely nothing and null to do with the criminal underworld.


I can think of a lot of reasons digital currency is useful beyond that.

It seems that way because they cracked down on the big money laundering & tax evasion rings making it more "involved" to use it as an untraceable route for criminal transactions. As a result, you don't hear about it as much. Altcoins, Tor, dark web, etc., still make it possible to remain inconspicuous and be able to move large amounts of $$(albeit, not in large chunks at a time).

Yeah, I can think of a few important reasons for it being useful & even superior to fiat currencies: its scarce being that it has a finite limit, highly divisible, and near impossible(at present) to counterfeit. Nevertheless, history has shown that whenever lots of money is involved in conjunction with a lack of regulation/oversight, lots of individuals & institutions get burned.

 

[DeathtoGnomes]

40% capital gains would work!

its the same as any other gains tax I think

 

[R-T-B]

It seems that way because they cracked down on the big money laundering & tax evasion rings making it more "involved" to use it as an untraceable route for criminal transactions. As a result, you don't hear about it as much. Altcoins, Tor, dark web, etc., still make it possible to remain inconspicuous and be able to move large amounts of $$(albeit, not in large chunks at a time).

I never said there was none but I an finding the idea that it is a "high percentage" fairly dubious.

its the same as any other gains tax I think

At the moment it's treated like any capital gain yes.

 

[lexluthermiester]

At the moment it's treated like any capital gain yes.

I don't think so. Individuals who mine can claim earnings under a standard 1099c as personal income(when they cash it out). This because they are mining for themselves, using their own resources for their own personal gain. MUCH lower taxation level. Small businesses can claim under standard business earnings schedule and can deduct expenses in the standard way. Capital gains does not apply. The laws need to be changed to directly target the activity of mining & handling/trading of cryptocurrencies of any kind.

An appropriate tax model for it would be capital gains plus a power usage modifier to tax the extra power drain on the national electrical supply(which is itself a very serious problem..), all applied on a quarterly tax remittance basis.

 

[R-T-B]

I'm pretty sure the SEC guidance during the last surge was that it's treated as capital gains when you cash out but I am open to corrections there. I admitedly left this detail to my tax guy last time I mined.

 

[lexluthermiester]

SEC guidance

That is just guidance. Taxpayers, as long as they follow the law as it applies to them, do not have to file earnings from cryptocoin sales under capital gains. The law needs to be changed to force it.

 

[R-T-B]

That is just guidance. Taxpayers, as long as they follow the law is it applies to them, do not have to file earnings from cryptocoin sales under capital gains. The law needs to be changed to force it.

As I said, not a tax expert. Appreciate the insight.

 

[lexluthermiester]

As I said, not a tax expert. Appreciate the insight.

To be fair, I only know because of a client who has mined & sold some and we discussed how the taxes applied to him. I was thinking that logically a sale of coin would fall under sales tax laws as it is a sale of something from one person to another. But it seem it falls under personal income when mined and sold as an individual because it is a digital creation and as such falls under a 1099c taxation schedule. Small businesses fall under a similar set of tax schedules.

 

[lexluthermiester]

This was interesting.

Brian makes some good points... I'm with him, GPU market prices might be about to crash, which can only be good for gamers and the PC market in general!

 

[R-T-B]

If you are counting on ASICS to crash them, don't. We've been down that road before.

 

[Shrek]

Yeah, miners NEED to buy this kind of hardware instead of GPUs...

Could it be that miners are sponsoring the development of more powerful video cards? Just a thought.

 

[Totally]

With that mindset, why would AMD or Nvidia sell any of their own cards?

Probably more money in building a brand and getting investment money than you get for a volatile currency

Because mining is not the primary purpose of said cards.

 

[Rithsom]

I really hope that enough ASICs will be produced to force GPU mining out of the question, at least until the next gen of video cards is released.

Could it be that miners are sponsoring the development of more powerful video cards? Just a thought.

Quite the contrary. AMD and NVIDIA have no reason to innovate as long as all of their product gets sold. Just look at what happened to Intel: years of no competition made them complacent and eventually fall behind in the CPU space.

These random bursts of suddenly high demand are not what drive innovation. Competition is what drives innovation. And currently the question is not who is producing the superior product, but who is producing the most stock.

 

[lexluthermiester]

We've been down that road before.

Not like this. Mining Eth is about to change in a big way.

 

[Hachi_Roku256563]

also banning crypto currency would screw people oever whos just invested in it or who have done mining and thats not exactly fun and no one will buy if its gonna be banned

 

[sepheronx]

Not like this. Mining Eth is about to change in a big way.

Yes it was.

And other coins exist too. As he said, we been down this road before.

 

[lexluthermiester]

Yes it was.

And other coins exist too. As he said, we been down this road before.

Ok, what other gpu mined coins exist with ANY viability? There are none. Etherium is the only one..

 

[phanbuey]

Ok, what other gpu mined coins exist with ANY viability? There are none. Etherium is the only one..

But isn't that Etherium's whole shtick? If it leaves won't it just make space for another GPU blockchain currency? DaggerHashimoto Coin!

 

[Hachi_Roku256563]

Ok, what other gpu mined coins exist with ANY viability? There are none. Etherium is the only one..

whos gonna pay out all the people if cyrptomining is banned

 

[sepheronx]

Ok, what other gpu mined coins exist with ANY viability? There are none. Etherium is the only one..

Conflux. I am mining it through nicehash on my 6800xt and was making about $4 a day with it while I made about $7 a day on ETH. I switched back of course but yeah. I am kind of just testing the waters right now with altcoins.

I will find bitsbetrippin google document where he goes through various coins and profitabilities and potential after ETH 2.0 next year.

miningmodel-v3.4

docs.google.com

WhatToMine - Crypto coins mining profit calculator compared to Ethereum Classic

Calculate how profitable it is to mine selected altcoins in comparison to ethereum or bitcoin

whattomine.com

But isn't that Etherium's whole shtick? If it leaves won't it just make space for another GPU blockchain currency? DaggerHashimoto Coin!

They are trying to change that where they want to be like bitcoin in the essence. Or maybe like Silver is to gold.

It may go two routes - may crash ETH value if people all switch and then demand goes to other coins, or people will continue to throw cash at it and cause it to spike.

Either way, ETH as of next year will be PoS rather than PoW. So altcoins like Raven, conflux, ETC and the like will end up becoming popular among the miners. Their value is low but like as BBT states in some of his videos, if something like RVN gets to about over $1 per coin, it can be more profitable than ETH is, and that is assuming if 75 - 100% of the mining rigs all switch to it. I dont think that will happen as others may try to hedge their bets on various altcoins that are PoW.

 

[trog100]

eth has gone up by 1300% in one year.. since january this year alone its gone from 600-ish dollars to 2800-ish dollars.. its gains have outpaced bitcoin by at least double..

how much eth will cost in one years time is a total unknown.. so is how much a gpu will cost..

for sure it aint gonna be another 1300% but it could be 500%.. maybe..

some will say it will crash just like it did back in 2018.. maybe but the 10 eth i mined (mostly) back in 2018 is now worth around $28000.. a gain this year alone of around $22000..

i dont attempt to make sense of it i just know that the top coins are nice things to own..

for big business the top coins are a way of storing spare cash profitably and a way that can easily be liquidated if required..

the small cap coins are something for the greedy to gamble with..

trog

 

[lexluthermiester]

Conflux.

Not a viable cryptocoin. It's one of the many "nothing-coins" out there. It's not listed on a number of coin tracking sites and even coinranking.com isn't showing it being traded as no values for it are listed.

Anything else?

whos gonna pay out all the people if cyrptomining is banned

No one. That's the risk taken when making ventures like this..

 

[birdie]

This is great news for several reasons:

1) Miners will start buying this device instead of GPUs
2) The mining difficulty will increase substantially so mining with GPUs could become less profitable = fewer cards being used/bought for mining

In the end I'd love Ethereum and other cryptos to change their mining algorithms so that they were unsuitable for GPUs. This is unlikely to happen anytime soon though but at least Bitcoin has been like that for at least the past 8 years.

 

[sepheronx]

Not a viable cryptocoin. It's one of the many "nothing-coins" out there. It's not listed on a number of coin tracking sites and even coinranking.com isn't showing it being traded as no values for it are listed.

Anything else?


No one. That's the risk taken when making ventures like this..

If it's a nothing coin, then how am I making money from it?

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Raven coin and ETC then.

I presume you don't mine so thus your not sure how it works. I can tell many here don't mine so make assumptions. It's fine. I just don't want you guys to get your hopes up or anything. Time is the essence so we will see.

I myself want cheap GPU's so I can go back to building machines for customers. But as said by some of the biggest miners - GPU mining won't go away. These ASICS are a great chance but the hindrance mostly is hard to get, expensive and no resale value