Is crypto winter just a fancy term for a crash?

7 replies 280 views
ColdForkMember
Posts: 1 · Reputation: 96
#1Dec 29, 2020, 11:45 AM
I get the general idea of what a crypto winter is. I've also come across the notion that after every crypto winter, there's usually a rally. Can anyone break it down for me and share how to use this info to figure out the best time to scoop up miners?
6 Reply Quote Share
L0neDegenSenior Member
Posts: 331 · Reputation: 1464
#2Dec 29, 2020, 02:39 PM
Just look at the chart for the whole timeline. One example is this one, I don't know if I'll be able to insert the image here, however, the original link is https://resources.swissquote.com/sites/default/files/2020-04/graph1.png Warning: this is a logaritmic scale chart, you may want to crosscheck with another price charts! I see a cycle from halving to halving. Others see it from ATH to ATH. It doesn't matter, still a ~4 year cycle. In second cycle the crypto winter was around the first 2/3 of year 2015. In the third cycle it was pretty much during the 2018 autumn and 2018/2019 winter. The longer the "depression" lasts, the more the people call it crypto winter. But overall it's the worse part of the bear market, it's the period the price is the lowest in such a cycle and doesn't give any signs of recovery. It's the most depressing part for holders, it's the period some miners may be disconnecting their gears (for shorter or longer periods of time). I am not an expert, but this is how I see it. Also according to this chart, one year before the halving the price is already on a healthy rise. Maybe that's the moment you want for buying gear? I don't know, I certainly cannot give advise in that one. All this is more a price analysis/speculation.
2 Reply Quote Share
5wiftS4geHero Member
Posts: 850 · Reputation: 3880
#3Dec 29, 2020, 06:51 PM
Asics are still very expensive, and the network hashrate is still growing https://www.nicehash.com/countdown/BTC-halving-2024-05-10-12:00 There is not much time left before the halving, if we assume that now the cost of mining 1 bitcoin is 15,000 dollars, then in 18 months the cost of bitcoin mining will increase by 2 times. And the price of electricity is constantly rising. I think that ASIC investment is not the best solution for small miners.
3 Reply Quote Share
DarkMinerFull Member
Posts: 103 · Reputation: 432
#4Dec 30, 2020, 12:04 AM
Winter just like the season is a period where nothing grows due to the extreme weather, so a crypto winter will mean a period where it will be difficult and unfavorable for crypto, so investing in crypto at this time, you should not be quick to expect growth. After winter is followed by spring where plants begin to grow, the rally that follows after the crypto winter cycle can be attributed to the same characteristics of the spring season.
2 Reply Quote Share
sat_2011Full Member
Posts: 119 · Reputation: 334
#5Dec 30, 2020, 05:02 AM
I don't have much knowledge about crypto mining but crypto winter is simply defined as the season of the crypto market's bearish trend. However, crypto winter also impacts the mining difficulty because mostly during the crypto winter mining difficulty is always down but if the mining difficulty is high it will suppress the crypto winter trend and generate a bullish trend. Mining is always profitable during crypto winter because most miners consider crypto winter mining not to be profitable since they need to sell their earnings to fix bills but if you're going to mine for future purposes while to fix the bill using another means the current unprofitable mining earning will be in your favor when it bullish market.
4 Reply Quote Share
coin_sigmaLegendary
Posts: 1275 · Reputation: 5553
#6Dec 30, 2020, 09:01 AM
The price of miners these are pretty cheap from Bitmain and Canaan units. Why would you wait or predict the exact time to buy miners? Today is the best time to buy units from Canaan 1126 pro is around 400 to 500 which is cheap for 60 to 68th/s. If today is not profitable to mine you can also hold these units until the price of Bitcoin gradually rises again. So the best time to buy miners is when the price of their units drops a lot or is very cheap just like the units from Canaan.
2 Reply Quote Share
hodler2019Legendary
Posts: 2182 · Reputation: 12913
#7Dec 30, 2020, 01:37 PM
yeah dca calls for buying miners now. even sit on some hoping for a solid uptick.
3 Reply Quote Share
ColdAlphaSenior Member
Posts: 242 · Reputation: 1420
#8Dec 30, 2020, 07:55 PM
Crypto Winter is just the coolling down of the Hype Phases Crypto loves to go thru. For me BTC is just there where it should be, still ist too old and LTC is way faster. No rewards to give out.
4 Reply Quote Share

Related topics