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Bitcoin Plummets Below $8,000 For First Time Since November (axios.com)
Bitcoin's value dipped $8,000 this morning -- the first time since November 24, according to CNBC -- just hours after the cryptocurrency made news after going under $9,000. From a report: After the news that Bitcoin had headed south of $9,000, CNBC branded the range of $9,000 to $10,000 as "a difficult one for bitcoin to break below" after its surge over $10,000 last year.
Products that are getting more expensive because they are expected to be sold for more money later. Is often creates a bubble condition.
The Bit Coin price kept on going up, so people wouldn't spend them, thus cause the price to go up further. Until they hit a peak were they decided to sell them. Then the market gets flooded with bit coins who's guaranteed value to increase is no longer expected. So they will sell them for less to get as much as they can out of it.
This happened with the Housing Market
This happened with the Tech Market
This happened with the Comic Book Market
Lucky for us, the Bit Coin Bubble wasn't a big part of the economy, so the looser in the Bit Coin Gamble arn't bringing the rest of the economy down.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
"Bitcoin's value dipped $8,000 this morning "
In English there is a difference between the verb **to dip** and **to dip to**. The latter is probably what was intended.
"Prepositions" are important and they do not like to be ignored.
You can't see ANYTHING from a car, You've got to get out of the goddamned contraption and walk...Edward Abbey
The difficulty balancing algorithm prevents that from happening. The amount of computing power needed to solve each block is variable based on how much real time it took to solve the last block. The algorithm adjusts the difficulty (how much of hash has to be zeros in Bitcoin) to keep the solve time relatively constant.
If lots of people turn off their rigs for any reason, the current block will take a long time; but the next block will drop its difficulty to compensate based on available mining resources. If the difficulty gets high enough that cost of power exceeds the value of the coin mined, some people give up, and the difficulty falls accordingly until it reaches equilibrium.
Balancing should ensure that people who mine make a modest profit. It's only mad money for miners when the coin they mine is in the middle of an asset bubble that balloons its value almost before they've finished earning it. The bubble has to deflate eventually (I believe I hear a leaking sound now...), but mining should continue to stay profitable as long as people are interested in using coin.
Is certain Asian and southeast nations cracking down on crypto-currency. Governments in those places are cracking down because they realized they had nowhere to track payments using BitCoin, Ripple, Ethereum etc.
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But like it or not it's coming, Ripple is interesting though. They're looking to super-cede the SWIFT banking transfer method and of course extract their pound of flesh for the doing. And they've got some big banks on board, like Santander, American Express, etc.