Crypto Week in Review: Bitcoin (BTC) Finishes Volatile Week on a High Note
This week, Bitcoin (BTC) continued its downward trend, hitting a 7-month low of $6,498.41 Wednesday. Just hours later, BTC spiked nearly 14% to $7,447, before finding stability and is currently trading at more than $7,500.
Some are blaming Bitcoin’s flash crash on reports that many mining pools are unprofitable or barely breaking even. According to CoinShares, the average cost to mine a Bitcoin is $6,300, sometimes more or less expensive, depending on the efficiency of mining equipment and the country’s energy costs.
The good news? As Bitcoin approached $6,300, it quickly rebounded back above $7,000, leading experts to believe that it’s unlikely to drop below its profitability-level.
Despite the crypto market’s recent volatility, Bitcoin claimed the title of “Best Investment of the Decade.” According to CNN, if you invested $1 in Bitcoin in January 2010, it would now be worth roughly $90,000.
In comparison, a $1 investment in Gold, the commodity Bitcoin is most often compared to, would only be worth about $1.34 today. The stock market yielded slightly better results, with a $1 investment growing to $3.46 over the last decade. Still, no other investment came close to Bitcoin’s 8,999,900% ROI.
This year alone, Bitcoin is up close to 100%, with a halving on the horizon. Historically, halving events, a rule in Bitcoin’s code that reduces miners’ rewards by half, has resulted in exponential growth.
Will the 2020 halving send Bitcoin to the moon? What’s in store for crypto over the next decade? Make your prediction on Twitter!
If you’re not a bitcoin enthusiast, you probably haven’t heard what’s happening next year: It’s called the “halving,” and it will cut production of the cryptocurrency by 50%. Read more
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