In one year, Bitcoins have lost over 80% of their value, falling from 17,000 euros to just over 2,000 euros. A value that does not make it profitable to mine
Just a year ago we were here talking about the daily records reached by Bitcoins, which in just under 90 days quintupled their value, going from a value of 3,000 euros to almost 17,000 euros. Many started buying Bitcoins in the hope of becoming millionaires in a short time. But 365 days later of people who became rich with Bitcoins have not been seen. On the contrary.
Looking at the graph of the Bitcoin price trend, we can see that 2018 has been a nightmare year. After reaching its peak value, the cryptocurrency, as well as the whole market of alternative currencies, suffered a real collapse. It is estimated that Bitcoins in the last 365 days have lost almost 80% of their value, sending several billion dollars worth of investments up in smoke. What is this all due to? Many experts blame the action of some Central Banks that have decided to suspend the investments of companies in the cryptocurrency sector. In addition, multinationals such as Google and Microsoft decided to block online advertising of Exchange platforms where the alternative coins were bought and sold.
The drastic fall in the value of Bitcoins also had heavy consequences on those who had invested in Bitcoin mining. What is mining? Many simply it is the process that leads to the generation of Bitcoins. To create cryptocurrencies you need to use a computer and a client that downloads data packets from the Net containing cryptographic calculations of enormous complexity: once solved, the user will be “rewarded” with a fraction of the virtual currency. During the “race” of Bitcoin, thousands of users have invested considerable sums in the mining of cryptocurrencies, thinking they could earn with the PC without doing anything.
Bitcoin, because it is no longer worth mining
As we have just seen, to generate Bitcoin you need a computer. But not just any PC, but a computer with at least a couple of top of the line graphics cards. A PC dedicated solely to Bitcoin mining costs at least between 5000 and 6000 euros. And it has a life cycle of a few months. These investments were profitable when Bitcoins were worth a little more than 17,000 euros, but with the value dropped to just over 2,000 euros many people have lost out. The bank JP Morgan did a study and calculated that by mining cryptocurrencies, they earn a few cents of dollars every day. A figure that makes it impossible to continue making a living generating Bitcoin. And the future does not seem to be bright: according to some forecasts, Bitcoins, and more generally the world of cryptocurrencies, will continue to lose value throughout 2019.