AMD Radeon R9 290X in Short Supply, is Bitcoin Mining to Blame?

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Ghost XFX

Take a look at this....

http://i.imgur.com/T5BbvrG.jpg
So many suckers in this world. But for a short term investment of AMD stocks...

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mah_101381

People are spending real currency to buy video cards to "mine" a FAKE currency that has no actual value. It has a value because enough morons believe their time and lack of actual effort deserves a value. Are seriously kidding me? The saying goes, "a fool and his money are soon parted".

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HiGHRoLLeR038

if enough morons believe that a piece of paper with a dead president's head on it is worth money, then really, anything can have worth. The only reason cash dollars have any value is because we are in agreement that it has value. It's fiat money

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insaneserenity

you could say that about a lot of stuff people spend money on. From stocks and bonds to collectibles and all sorts of so called investments. If people still will pay real money for it, then investing in the hardware and doing it will prove profitable.

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Nimrod

only morons are still using GPUs to mine BC, there are better ways now

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The Mac

Its Alive! ALIVE!

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fireman7

Check out this thread, this guy towards the bottom of the thread (joshv06)bought 108 R9 290's from Newegg for $400 each. doing the math, that's $43,200 worth of 290's!!!!!

https://bitcointalk.org/index.php?topic=361992.0

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vrmlbasic

...I am astonished.

Props to him for doing more than his part to keep AMD afloat but damn, will he ever recoup those costs doing bitcoin? I'd probably go into shock if I saw his electrical bill after he runs all of these cards.

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aruisdante

He's not mining Bitcoins, he's mining Altcoins (Litecoin etc). For litecoin, at the current difficulty, each R290x will net him about 0.5LTC/day, so with the current valuation of LTC at about $35, he's making over $1,800/day. So yeah, he'll recoup the costs relatively quickly. But it is still a pretty huge capital investment and a massive risk with the hashrate growing at the rate it is.

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Thiazolium

"...AMD's GPUs are a little better at it.".

A "little" bit better? According to most tests they are in the neighborhood of 250 percent better than Titans and 780Tis.

www.extremetech.com/gaming/169402-to-slay-a-titan-amds-radeon-r9-290x-piledrives-nvidias-high-end-product-line/3

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iheartpcs

Forgive my ignorance but what the heck is this all about?

What is bitcoin mining and what do video cards have to do with it?

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AFDozerman

Ahem...

The best (and not quite most accurate) way to think about it is that each Bitcoin or other cryptocoin is a alphanumeric code that has been encrypted. When someone buys something with one, they send the encryption to another person who re-encrypts it and verifies with the network.

Every now and again, this central secret server out there generates a new Bitcoin (or other servers for other cryptocurrency). To get one, you have to break the encryption. GPUs, given their parallel nature, are extremely good at this (especially the GCN architecture), so people are buying them up en masse and trying to horde as many 'coins as possib

All cryptocurrencies (Bitcoin, Litecoin, Worldcoin, etc...) only have value because we see them as valuable. In the end, they're just worthless strings of letters and numbers; Bitcoin is only the most valuable because it was the first, but now, litecoin is starting to catch up. My hopes are that BTC will stableize somewhere north of the 1500 dollar mark and I can finally sell out, but right now, the whole cryptocurrency market is wildly fluxuating.

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LatiosXT

Mining involves running a bunch of SHA-256 hashes, which is done much more quickly on a GPU.

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aruisdante

Bitcoin mining, absolutely not. At this point if you're not in the hundreds of GH/s range, you're not making money, and GPU's are much to inefficient (both from a cost and a power use) standpoint for that. ASICs are the only option for bitcoin.

But you're half right. It's Litecoin, essentially a clone of Bitcoin with some tweaks to the rules (there are 4x as many coins that will be generated, and most importantly uses a different proof-of-work algorithm that's not practical to build ASICs for yet), that is sucking up the GPUs. Over thanksgiving break Litecoin popped up from $9/coin to $45/coin, and has been boom-busting between ~$20-45 a coin since then. Litecoin is still very practical to mine with GPUs, although it's getting to the point that you need quite a lot of GPU power to make a reasonable return. The network hashrate (basically the total amount of computing power mining coins) for litecoin has been going up by roughly 15% A DAY since thanksgiving.

And BTW, it's not just limited to 290x, the 280/280x's are also in short supply.

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mhouston100

Is it perhaps to maintain some value for the hardware?

Just a thought that came to my mind when reading all the comments. Just thinking that buying 400 top line GPU's, mining for a couple of months, upgrading, then selling the hardware off at a fairly minimal loss. It would have to be preferable to buying expensive high end mining equipment, then basically throwing it away when the technology advances.

It obviously would depend on the disparity between GPU mining and custom hardware mining.

I dont know enough about it to do the maths but that could be part of it.

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The Mac

290 pro is also impossible to find.

just look at the markups Newegg and Amazon is charging. +$50 for the pro, and +$100 for the xt.

There are 290/290xs to found: on Ebay at ridiculous prices.

The last gen cards 7950/7970 are also selling at serious premiums on ebay as well.

7950s are regularly going for $400.

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AFDozerman

This pisses me off. I just wanted a nice GPU to play some games on as well as some GPU accelerated rendering and photo/video editing, but no, these greedy bastards who were too dumb to buy in back when they were 2 dollars a coin are going apeshit now.

I've been mining since 2010 and the difficulty has gotten to the point that I just moved my wallet to a jump drive and stopped wasting the electricity.

Recently, I decided to see if I could mine a couple. When I plugged in my old GPUs (5770s and my two 7770s, plus my 670ti in my rig that I'm selling right now), I was able to bring in about four cents per day. FOUR CENTS. As in, less than a nickle. Although a 290x is a lot more powerful, off of the top of my head, I'm gonna guess that you'll make about fifteen cents a day with one, minus all of the electricity that you're burning through (which pretty much puts you in the negative more and more each day). Yeah, soooooo worth those 500 dollars you spent, huh?

Yeah, no. Sexcoin is where it's at. ;)

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bigrigross

Nope, a 290 is bringing me in about 400 dollars a month with only a 38 dollar power bill.

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AFDozerman

Well, if I can ever get my hands on one...

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The Mac

Litecoin is still pretty profitable.

the 290 pro can get upwards of 1000khs/sec.

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Jacobwt226

So either there are no R290x cards, or all of MaxPC readers ARE Bitcoin miners...Then again the R290x is selling like hotcakes, personally I like the Mid-Range Market at the moment, as long as it supports Multi-GPU!