Bitcoin takes a tumble along with other Cryptocurrencies

Bitcoin and almost every other cryptocurrency crashed hard today

While sometimes it’s good to get on bandwagon, sometimes it’s not a good idea. For most people, cryptocurrencies are a good idea. It’s simple and makes sense. Some might even think, this is the wave of the future, in how we do money transactions. Bypassing all the middlemen such as banks, a person simply send and receive money nearly instantaneously through the internet to one another.

Bitcoin is the most well known virtual money system, along with others such as Ethereum and Litecoin. There is no physical money held in someone’s hand, the money is electronically based. This allows for a level playing field, for people from all around the world.

Bitcoin and almost every other cryptocurrency crashed hard today

According to sources such as Techcrunch, the current market value for Bitcoin amassed its value to upwards of $20,000 USD. Now, the market crashed overnight practically. The current market rate of a single Bitcoin, is valued at $13130.14 US Dollars. This is a staggering market loss, which took quite a dip…reaching as much as 23% lower than its previous market value from days earlier.

Bitcoin initially started out at $0.003 per coin. Between Jan 2009 – Mar 2010, the marketplace was born. It was slow going, as the very first auction was for 10,000 BTC up for sale at $50 dollars (cumulatively). However, no buyer was actually found. BitcoinMarket.com was established as a transaction site, but now no longer is in operation.

It isn’t just Bitcoin that has lost value. Ethereum is now down by 20% percent. Bitcoin Cash also is down 30% and Litecoin is now down by 21% percent. Nearly every high-profile altcoin lost its value over the last 24 hours, according to Coinmarketcap.com. Ripple was up seven percent, and just one of two coins are remaining green over the last 24 hours.

The first real Bitcoin transaction happened on May of 2010. A man named Laszlo Hanyecz, made the first real-world transaction after buying two pizzas in Jacksonville, Florida for 10,000 BTC. Imagine that now, quite amazing to think about. In more recent times, Bitcoin has jumped from around $8,000 per coin to $20,000.

There are some people out there really feeling the sting of this market crash. However, like many markets they can bounce back up. Those who are in this for the long haul, should see gains again soon enough. Coinbase reported the crash reaching nearly a 23% dip. On some exchanges, the price briefly dropped below $12,000 dollars per coin at 7:30 AM London time.

There are in fact only 21 million Bitcoins, which can be mined in total. Once miners actually unlock this many Bitcoins, the world’s supply will inevitably be tapped out unless it is changed creating a larger supply. With Bitcoin, miners use special software to solve mathematical problems and are issued a certain number of bitcoins in exchange.

Bitcoin mining

There are specialized mining rigs, that have been created to dig for these coins virtually. These computers are specifically created for this purpose. They range in prices between $35 dollars to upwards of $15,000 or more. Also, there are companies people can invest in, who have numerous computers which continuously mine 24/7.

These machines in theory will net someone a profit over time after forking over the cash upfront for the investment. It has become an industry upon itself. These mining farms mine for the money and investors are anxious for their returns. At the beginning of December 2017, Bitcoin surged to $17,900 dollars a coin. Now, many are waiting after the holidays how the market will actually do.

(Source: Techcrunch and Wikipedia)

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