Bitcoin: money in free fall

In recent days, Bitcoin cryptocurrency has continued to lose value and is now well under $ 4,000. This evolution is exactly the reflection of the evolution of the share price a year ago. At that time, we did not know why the value was increasing every day and closed at the end of the year for just over $ 20,000. Since there is no fair value, no central bank, no national economy, as is the case with "traditional" currencies, hiding behind a cryptocurrency, it is also difficult to say where the price might be. 'collapse. Encrypted currencies bring little benefit to the owner, so most trading activities are just speculative investments.

700 billion here

Market watchers say the recent percentage correction is not the most important of the ten years of Bitcoin's existence. In 2011, the digital currency lost 85% of the value and from 2013 to 2015, after the collapse of Mt. Cox, even more than 90%. The big difference, however, is that at the time, people who knew the technology well were involved in cryptocurrency.

In recent years, many private investors, often inexperienced, have entered the market. A variety of new currencies has emerged. Unlike traditional central bank currencies, such as the franc and the sterling, which develop individually, the development of values ​​in the cryptography market is largely parallel – the clock remains the Bitcoin. According to estimates, investors in digital currencies have lost more than $ 700 billion this year.

Equipment stocks are suffering

At this level of evaluation, what is called mining, the exploration of new currencies through arithmetic operations has become less attractive. This is also felt by hardware manufacturers. Market observers see the falling demand from the crypto-extraction sector as a reason for the weak semiconductor market. The course of action of Nvidia graphics card maker, whose products are widely used in coin making, has fallen about 30% over the past five days.