Bitcoin Value Nosedives, Forcing Mining Decline
Ashley Allen / 3 years ago
On a steady decline for over six months, the value of Bitcoin has plummeted to $190.13, marking a 50% drop in the past month, and 25% in just the last few days.
While Bitcoin is used to boom-and-bust fluctuations – the cryptocurrency reached the heady highs of $1,150 during the last quarter of 2013 – this latest decline has economists worried, to the point that Bitcoin miners have thrown in the towel, with some of the world’s largest operations forced to sell its mining hardware, currency reserves, or both, just to cover overheads and loans.
Despite the downturn, though, Bitcoin is as popular as ever, and that’s part of the problem: the more Bitcoins flood the market, the more their price will drop. Once the coins in circulation hit critical mass, they need to be spent for the currency to recover value. This valley could be seen as part of the natural evolution of Bitcoin from niche digital currency to legitimate tender.