The Point

Is Bitcoin Dying?

The posh cryptocurrency is not as popular as it was at the beginning. Is the end near?

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Is Bitcoin Dying?

Getty Images/Ikon Images

Getty Images/Ikon Images

Getty Images/Ikon Images

Adrian Marrero, Reporter

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Bitcoin, which all of a sudden blew up in popularity a few months ago, is suddenly dropping in price. The fashionable cryptocurrency has seen its price sharply drop from $19,000 a share to $7000. What gives? Is Bitcoin slowly dying?

Probably not.

Bitcoin, the first mainstream cryptocurrency, is a digital currency. Like most cryptocurrencies, Bitcoin uses technology called Blockchain, which is a digital ledger of economic transactions that can be used to record anything of value. In other words, it’s a global spreadsheet, used by millions of computes, that keeps tabs on economic data. And because it’s a digital process and not centralized to one place, that makes Bitcoin hard to mine or allow one person to control the process.

It’s “easier” to buy it and re-sell it, but take it with a grain of salt as it’s really expensive.

If you’re going the “expensive” route, first you need to spend about $3,000-$5,000 to buy a Graphic Processing Unit (GPU) dock, in order to get into the Bitcoin mining game. Even if you could get the cash for the unit, it takes about 1 week to mine a 0.00001406 of a bitcoin it would take 1,367 years to mine one Bitcoin. In other words, it’s just not worth it.

Near the end of 2017, the value of Bitcoin was near its peak at $19,000. At the beginning of September 2018, that number dropped to $8,700. The reasoning behind it is that during September of last year, mining Bitcoin was way easier, but over time more people decided to jump on the Bitcoin train and made it harder.

To make matters worse, the price of computer parts went up and people stopped mining Bitcoin altogether. You spend around 12 grand to mine it, but you can’t make enough back in a reasonable amount of time. This caused the prices to slowly lower.

“I think that it is dangerous and will become obsolete at some point,” said Poinciana High School finance teacher Ramon Arroyo. “I think that it’s dangerous because it’s digital and anyone smart can hack it and ruin it for everyone.”

Even though Bitcoin is seeing the short end of the stick it will most likely come back.

Bitcoin is like the stock market, the prices go up and down all the time. Once the price is affordable, more people will start getting in on the cryptocurrency again, causing the price to improve.

Supply and demand – a tale as old as time.

“Stocks have way more options and there’s lots of companies with them,” Arroyo said. “Bitcoin is one thing and will probably stay only as one thing.”

 

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