BusinessTechnologyIs cryptocurrency worth less than it is to make them??

Chief Editor2 years ago4 min

Cryptocurrency have become a global phenomenon known by most people and understood by only a hand full of people. Bitcoin is the biggest cryptocurrency known to most people is a digital currency (also called crypto-currency) that is not backed by any country’s central bank or government. Bitcoin-to-Bitcoin transactions are made by digitally exchanging anonymous, heavily encrypted hash codes across a peer-to-peer (P2P) network.
The last year have been quite the ride for the crytomarkets. from having the highest value of $19,783.21 in the fall of 2017 to the crash and bounce patterns in the first half of 2018, to the slow and steady decline from then, cryptocurrencies have been predictable in their unpredictability as show by the data at coinwatch.com.
The biggest negative factor facing the cryptomarkets lies in the very nature of cryptocurrency. Cryptos are not physical products. They do not produce any service or pay out any dividend for investors. Buying more will not boost employment. They are the purest speculative instrument in the financial trading world; they can only generate a return for someone if they can be sold again, and at a higher price.
It has finally come to the point where it cost more money to make bitcoin than the cryptocurrency is worth. A single bitcoin costs $4060 on average, but the real value of the currency is just $3500 according to an analysis by JPMorgan chase.
The problem Bitcoin is facing is the fact that the entire business model requires volunteers to process transactions also know as “miners”, these are regular people who devote some of computer processing power to solve mathematical puzzle once every 10 minutes. With every batch of transactions processed miners get rewarded with some bitcoin. However, the. As more people joined the race, the puzzles have become harder to solve, requiring more computer power. It has got to the point where the bitcoin network is estimated to use as much energy as the nation of Ireland.
In recent years the prices of bitcoin have tumbled in recent months and is still is on a unpredictable roller-coaster since 2017. It has got to the point where processing transactions is no longer profitable due to the large amounts enthusiast and large companies mining bitcoin, though we might see it have a comeback as because people drop out of the race due to it no longer looking profitable. Making it easier and economically viable again.

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