ShadowofGhosts :
palladin9479 :
8350rocks :
Anyone mining cryptocurrency these days using GPUs has mostly missed the boat. FPGAs and ASICs are where the big money in that is, and it is one of the few ways to still turn a profit doing it. However, as I understand it, there are other less in demand currencies than bitcoin, so that may be what people are using those radeons for at this point. However, I know little of the newer currency and bitcoin is pretty tapped out at this point.
There is no more money to be made in mining BTC. Speculation has already took over and hyper-inflated the price. The moment people started making cheap custom ASIC's it was over with as nothing anyone else can do will equate to how fast those things can pump out SHA-256 hash's. LTC, IMO, has a much better hashing algorithm that is resistant to such mass mining methods.
But wouldn't the Scrypt in Litecoin make it even less profitable in the future given that difficulty will increase, and the difficulty increase will outpace the release of stronger mining GPUs. ASICs will have to exist for the sake of longevity of the currency.
Honestly, I think that AMD can make big $$ if they make cards specialized for cryptocoin mining, which will also make the prices of high-end AMD Cards go back to what AMD intended them to be (lower than Nvidia, which will give AMD more customers), and also get cryptocoin miners to buy their ASICs, which equates to more $$
That's not how that works.
The difficulty of the equation is changed only if the supply is increasing faster then originally planned. For BTC's it's one coin per 10mim on average. So if in a given week there is one coin per 5min created the difficulty will be doubled to bring it back down to one per 10min. Your competing against every other miner in the world for that coin. The faster you produce them the harder they will become to produce. In 2013 the difficulty of BTC increased by more then 10x due to all the ASIC's being created. Since all the values for a SHA-256 has operation can fit inside register memory, it's trivial to create a custom chip that only performs that operation. It'll be faster then anything else on the planet, doing that singular operation. Scrypt was created specifically to battle that vulnerability. Scrypt is memory intensive and all the values can't fit inside register memory so any custom chip would also have to include a high speed memory subsystem and cache, that would inflate the cost and make them non-profitable in most cases.
BTC was fine until the difficulty exploded suddenly. Less then 10% of the mined BTC's are on the market right now, meaning most people are sitting on them waiting for the price to go up further. It's caused the supply to dwindle to nothing and the price to skyrocket. As long as people are running those custom ASIC systems and hoarding the BTC's the entire system will have serious issues.