Around 1 year back, Bitcoin hit its all-time high of $19665.39 on December 16, 2017. It has lost 82.74% of its value since then, as reported by CoinGecko.
This accounts for a loss of around $700 billion in a year.
Many experts believe that one of the consequences of this downfall is the fall of Bitcoin mining industry. More than 100,000 individual miners have shut down their operations and have been closed, and around 1.5 million servers have been shut down since September 2018.
According to analysts, a majority of the miners can profit only if BTC trades above $4500 level. As of today, only very few miners can afford to stay in the game, specifically those who have access to very low-cost electricity.
This leads to a problem.
As lesser and lesser companies will control the Bitcoin mining, there is a greater chance of them joining hands and executing the 51% attack.
Ryan Selkis says:
In such a maneuver the miners can reverse transactions and stop new ones, which can potentially make them flee with the money of thousands of people.
The hash wars between the 2 groups of Bitcoin cash has already triggered fears in the mind of investors. The truth is that in the short-term and in the mid-term (1-3 years from now), there seems to be no catalyst that will drive the bitcoin price back up (or to the moon). the sentiment is negative and most investors do not want to enter in the midst of a clear bear run.
What are your views on the current market conditions? Let us know in the comments section below.