Shervin Pishevar and HODL Investing

Shervin Pishevar’s prediction about the price of Bitcoin continuing to fall was accurate. The cryptocurrency market did not rebound after February. Much of the gains from 2017 were lost. The whole market was affected. Back in February, Shervin Pishevar saw interest rates and other factors weighing this industry down.

Shervin Pishevar is not a fortune teller, rather, he understands that the market is volatile. Investors do not have a lot of confidence in this market, and thus, are not willing to stick out the tough times. While this means there is more money to be made, it also makes it harder for cryptocurrency innovation.

Part of the reason that Shervin Pishevar projected continued market slippage through February is due to an industry trend. The cryptocurrency market has regularly risen at the end of the year. Then, market volatility tends to lead to a fast and sharp retraction.

The young industry is still overly influenced by the major markets. This is why its market cap grows and shrinks so quickly. Nevertheless, a correction follows the fall of prices at the beginning of the year. While it seems stable compared to the larger end-of-year volatility graph, this stability is detrimental to the uninformed, conservative crypto investor.

Cryptocurrencies are a highly technical industry. Its market cap is controlled by investors with more specialized knowledge than the fund behemoths of traditional financial markets. Conservative crypto investors must understand that innovation is not merely ongoing, it is rampant. Knowing about the more important looming releases illuminates price fluctuations. They may be subject to volatility, but at least they are backed by rational responses to market conditions.

Being uninformed in the cryptocurrency market is more detrimental to short term traders. There is a saying among crypto enthusiasts, “HODL”. Hold on for Dear Life, or HODL, is just one of the terms embraced by this community to cope with volatility unseen by any other market of this size. A long term investor that leaves their investment alone for several years allows innovation to reach its apex. This is the successful strategy that Shervin Pishevar alludes to.

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The Cost Of The Mining Boom

If it isn’t clear by now, the day of cryptocurrency is upon us. Despite a bumpy start to 2018, ‘miners’ all over the world are still building rigs with the industry-leading desktop GPUs. No one could have predicted the crisis that cryptocurrency would cause for PC gaming.

As gamers will know, keeping a gaming desktop up-to-date requires regular upgrades in the form of solid-state drives, processors and, perhaps most importantly, video cards. Unfortunately, video cards are the main source of power for mining rigs to complete their equations and generate currency over time.

The popularity of cryptocurrency mining has risen the demand for top-level and mid-level graphics cards through the roof. Those gamers looking to purchase their cards for the legitimate purpose — gaming — are the ones paying the price. In some cases, major retailers are getting away with charging more than double the suggested retail price for cards of all varieties.

It will be interesting to see how card manufacturers react to the growing shortage. They’ve already implored retailers to limit miners from buying several cards in one visit, but the numbers don’t lie: Micro Center and similar retailers have no incentive to make any change at all. In fact, doing so would be a deliberate assault on their bottom lines. Any regulations set against mining-specific purchases must be put into play by NVIDIA and AMD.

At large, the worst possible outcome would be a premature ending of the current PC gaming ‘golden age’ we’ve enjoyed for the past two years. Unreasonable prices could send gamers right back to consoles. Though not even as powerful as mid-level gaming PCs, consoles come with the benefit of staying at a consistent price.