Is Bitcoin Collapse Possible? Bitcoin is not a stablecoin. The value of Bitcoin is not tied to any other asset and its price is constantly fluctuating. Despite these fluctuations, no one is sure of its next price. Stay with us on the Pooyanmusic site to get a clear understanding of the future of Bitcoin and the problems that arise for its extraction.
Bitcoin peaked at $68,997 in 2021, but has experienced a 70% price drop since then, and currently stands at $20,000. This currency has experienced this up and down process almost four times so far. So far, despite all these falls, the price of Bitcoin has not reached zero, but the people who bought it suffered heavy financial losses.
There is a possibility that the price of any digital currency will be zero. But Bitcoin, which is very popular and popular, for this to happen, a big change is needed to bring its price to zero. It is very important to understand how Bitcoin works.
Bitcoin is usually bought for long or even short term investments. Many users usually make purchases by anticipating price growth when the price is low, and some other users make purchases without paying attention to the decrease or increase in the price of this currency, only with the aim of keeping this currency in the long term.
Some people believe that digital currencies will one day replace traditional money. In many countries, Bitcoin is used to buy goods and services. But in some countries, if this currency becomes illegal, it is still very difficult to dissolve the Bitcoin network in them. There are more than 100,000 active nodes around the world, which must be destroyed in order to completely collapse Bitcoin, which is impossible.
Bitcoin mining requires balancing different parts of a system. Bitcoin miners must manage investment and operating costs, repair costs, delays in shipping required equipment, necessary mining devices, and regulatory changes. Bitcoin miners also have to deal with its price problems, which is a sharp price drop from $69,000 to $23,000.
Nick Hansen, who is the CEO of Luxor Group, works in the field of digital currency mining. He stated that in the near future, public companies in the field of extraction will definitely face a capital crisis. Because they need nearly 4 billion dollars to buy a group of mining devices called ASIC that are newly introduced to the market, this amount of capital is not available to companies.
Hansen went on to say that hedge funds get into financial trouble very quickly. It takes about 3 to 6 months for miners to experience this problem. Time will prove who can come out on top from the low profits of Bitcoin mining.
PRTI’s consultant, Magdalena Gronoska, said that one of the challenges of the carbon-free economy and reducing greenhouse gas emissions is the lack of public and private sector investment in infrastructure and technology. The Bitcoin mining industry offers a new way to finance and subsidize the development of energy management infrastructure. This method is a smart and simple system of economic incentives.