The companies who dug Bitcoin are shedding because of the sharp drop in virtual money
Strong reduction of the bitcoin has made the notion that digital money will become a haven for discounts from traditional financial markets lost value. Innes predict price fluctuations reduced bitcoin in short from 3,500-6,500 USD, with the possibility of reduced to 2,500 dollars in January.
The worst slump in the year 2018 of the virtual coins, especially the Bitcoin, has led many companies to dig bitcoin on the world.
The great crisis of digital money in 2018 are headed for the worst week ever.
Digital money lost nearly 700 billion USD in the worst week since the bubble burst bitcoin
Bitcoin reduced the level of 4,000 dollars and most of their friends also fell on Friday, extended the wave off of digital Money index Bloomberg Galaxy since 16/11 up 23%. That was the week the worst decrease since the digital money craze peaked in early January this year.
How to compare Bitcoin with other assets?
After last year's crisis price increase to overcome many of the infamous bubbles in history, digital money has lost 700 billion and yet there are positive signs. Many fear is causing waves off the year 2018, includes the soi's review of the operator, the debate in the community and the chaos of the trading floor, just making this week even more serious. Even after the majority of digital currency lost more than 70%, Stephen Innes of Oanda has yet found clear evidence about the market hit bottom.
"There are still many people in this game," according to Innes, head of the trading division of Asia Pacific at Oanda, the interview from Singapore. If the bitcoin "collapse, if we see the wave of discounts on 3,000 USD, it will become a monster. People will flee ".
Innes says that his predictions in short as 3,500 USD to $6,500, with likely dropped 2,500 USD in January.
Digital currencies decreased 7.6% on this largest Friday, before recovering the remaining 4.1% giảmxuống levels taken at the 16h43 in Hong Kong (now Vietnam 15h43), according to the general price of Bloomberg. $4,244 level, is the lowest level of the bitcoin since April 10/2017. Ethereum opponent, ripple and little coin all are reduced by at least 5%. The market value of all digital Coinmarketcap.com money to track down 138 billion, down from about 835 billion at its peak in January.
Characteristics of the biggest disaster are the individual investors put money into right now when prices peaked. NVIDIA-chip maker based in California has lost almost half the value since early October as demand for chips for digital money mining slumped and the result is the array of betting they cause frustration.
The economic impact of the fall digital money is still limited, partly because the majority of large banks and money funds held very little or not affected by virtual money. For most investors, the recent slump on the stock market back to more important: 700 billion decreases in the digital assets since January compared to 1,300 billion evaporated from the market value of the global stock in just weeks This time.
While some people are optimistic about the digital money argue that bitcoin and other digital currencies will become the refuge for discounts from traditional financial markets, this year's decline meant these words take reviews treatment. Gold, a traditional haven of the investors, increased again in recent weeks when digital cash discount.
"I don't think the digital currency is attractive in comparison with the role of the other property," Innes said. "The price of gold will increase considerably and reverse relations are starting to appear between the gold and the money".
The companies who dug Bitcoin are shedding because of the sharp drop in virtual money.
The market has undergone a virtual money in the rush lasts the year 2018, and reviews of the major virtual currencies, such as the Bitcoin has fallen to about 75-85% in comparison with previous record highs.
The extent of this decline has led the company to bankruptcy by bitcoin profits do not compensate enough. Bitcoin is digging works to create new encoding copper by solving the complex calculations, which requires enormous power. This means profits harness the bitcoin global virtual coins when prices slide this deep.
So far, the company suffered heavy losses as Giga Watts in America, when it was forced to apply for bankruptcy in last week after the airline cannot repay 7 million debt.
According to CoinDesk, the bankruptcy of the Giga Watt has written: "the company is losing the ability to pay and could not repay its debts when due. The company and the creditors will be guaranteed best by reorganizing companies according to article 11 of the Bankruptcy Code ". Giga Watt has estimated assets are less than $50,000, while the debt of about $.50 million.
A group of the House of money alternative encoding of China also said it had to stop due to encoding money diggers 20,000 decrease in profit.
The dig in the bitcoin time always needs a very large amount of power. Now in China, for a long time, investors dig bitcoin hunting the old hydroelectric plant to proceed with the acquisition, turn them into peach yard bitcoin.
Excavator bitcoin is being sold off as scrap in China. With the current low price of bitcoin, many operators have accepted virtual money the inactivation of the excavator and wait for the price increase again. And work off the old cell cost can be reduced.
A recent video circulating on the internet can see that has made the miners sell the bitcoin ASIC of them as "scrap".
The Bank's analysts Morgan Stanley said: "we have calculated and stated that the level of power consumption for the year 2018 Bitcoin Peach will be greater than the entire power supply for electric vehicles worldwide in the year 2025.
In Norway, the Government and the removal of price subsidies are provided for the miner's bitcoin. Aftenposten newspaper said from next year, the companies and individuals dig money coding will have to tax the normal power. When the subsidised lower, miners have to carry his higher taxes, get a lower net profit if not moved production out of nearby countries such as Sweden and Denmark.
Economists Alex de Vries, PwC, for each company that will use about 50% of the Bitcoin energy around the world. "Keep this momentum, with virtual money, will" kill "the planet," said Vries.
However, some analysts dismissed this warning, given that the user needs to exploit virtual money accounted for only about 0.1% of the total power consumption of the entire world. Furthermore, the technology improved, also help to increase the efficient use of energy.