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In the United States and China, Bitcoin mining operations are facing closures after the fall in the price of bitcoin, which may no longer be profitable.
The world's most valuable cryptocurrency is currently trading at around $ 4,500, after losing nearly a third of its value in a week.
The exploitation of Bitcoin – the process of generating new units of cryptocurrency by solving complex puzzles – requires large amounts of electricity to power computing computers.
This means that the profitability of mining decreases when the price of Bitcoin falls, and if the price goes down too much, operations may no longer be economically viable.
1/8 Satoshi Nakamoto creates the first bitcoin block in 2009
On January 3, 2009, the genesis block of Bitcoin appeared. Less than a year later, creator pseudonym Satoshi Nakamoto had detailed cryptocurrency in an article entitled "Bitcoin: a peer-to-peer electronic payment system".
Reuters
2/8 Bitcoin is used as a currency for the first time
On May 22, 2010, the world's first real-world bitcoin transaction took place. Lazlo Hanyecz has bought two pizzas for 10,000 bitcoins – the equivalent of 90 million dollars at today's prices
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3/8 Silk Road opens its doors
Bitcoin quickly gained notoriety for its use on the dark Web. The Silk Road Market, established in 2011, was the first of a hundred sites to offer illegal drugs and services in exchange for bitcoins.
4/8 The first ATM bitcoin appears
On October 29, 2013, the first ever bitcoin automated teller machine was installed at a Vancouver, Canada coffee shop. The machine allowed people to exchange bitcoins for cash
REUTERS / Dimitris Michalakis
5/8 The fall of MtGox
The largest bitcoin exchange in the world, MtGox, went bankrupt in February 2014 after losing nearly 750,000 bitcoins to its customers. At the time, this accounted for about 7% of all bitcoins and the market inevitably collapsed.
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6/8 Can the real Satoshi Nakamoto get up?
In 2015, Australian police raided the home of Craig Wright after the contractor had claimed that he was Satoshi Nakamoto. He then canceled the request
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7/8 Big split of Bitcoin
On August 1, 2017, an insoluble conflict within the Bitcoin community led to the split of the network. The fork of Bitcoin's underlying blockchain technology has spawned a new cryptocurrency: Bitcoin Cash
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8/8 Sky Bitcoin price of rockets
By the end of 2017, the price of bitcoin has climbed to nearly $ 20,000. This represents an increase of 1,300% over the beginning price of the year
Reuters
1/8 Satoshi Nakamoto creates the first bitcoin block in 2009
On January 3, 2009, the genesis block of Bitcoin appeared. Less than a year later, creator pseudonym Satoshi Nakamoto had detailed cryptocurrency in an article entitled "Bitcoin: a peer-to-peer electronic payment system".
Reuters
2/8 Bitcoin is used as a currency for the first time
On May 22, 2010, the world's first real-world bitcoin transaction took place. Lazlo Hanyecz has bought two pizzas for 10,000 bitcoins – the equivalent of 90 million dollars at today's prices
Lazlo Hanyecz
3/8 Silk Road opens its doors
Bitcoin quickly gained notoriety for its use on the dark Web. The Silk Road Market, established in 2011, was the first of a hundred sites to offer illegal drugs and services in exchange for bitcoins.
4/8 The first ATM bitcoin appears
On October 29, 2013, the first ever bitcoin automated teller machine was installed at a Vancouver, Canada coffee shop. The machine allowed people to exchange bitcoins for cash
REUTERS / Dimitris Michalakis
5/8 The fall of MtGox
The largest bitcoin exchange in the world, MtGox, went bankrupt in February 2014 after losing nearly 750,000 bitcoins to its customers. At the time, this accounted for about 7% of all bitcoins and the market inevitably collapsed.
Getty Images
6/8 Can the real Satoshi Nakamoto get up?
In 2015, Australian police raided the home of Craig Wright after the contractor had claimed that he was Satoshi Nakamoto. He then canceled the request
Getty Images
7/8 The big split of Bitcoin
On August 1, 2017, an insoluble conflict within the Bitcoin community led to the split of the network. The fork of Bitcoin's underlying blockchain technology has spawned a new cryptocurrency: Bitcoin Cash
REUTERS
8/8 Sky Bitcoin price of rockets
By the end of 2017, the price of bitcoin has climbed to nearly $ 20,000. This represents an increase of 1,300% over the beginning price of the year
Reuters
The biggest victim to date may well be the American mining company Giga Watt, which was forced to file for bankruptcy in Chapter 11 this week after being unable to pay debts of about $ 7 million.
"The company is insolvent and unable to pay its debts to maturity," says the deposit, according to CoinDesk.
"The company and its creditors would be better served by a reorganization of the company under Chapter 11 of the Bankruptcy Code."
Bitcoin experienced two major price declines in less than a week, after several months of market stability (CoinMarketCap)
The majority of Bitcoin's mining activities are based in China, where electricity costs are among the lowest in the world.
Still, despite cheap electricity, images and videos of the closure of mining activities in the country have spread on social media.
The Hong Kong-based mining platform, Suanlitou, announced this week its inability to cover electricity costs for a period of 10 days in November, according to the South China Morning Post.
Another group of Chinese cryptocurrency miners also reportedly closed 20,000 mining devices due to declining profitability.
It is unclear what the future holds at the price of bitcoin, some analysts relying on further declines, while others expect the market to reverse before the end of the year. 39; year.
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