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Bitcoin just ended its worst-performing month in seven years in terms of month-over-month price declines. While this is comparing rate of fall and not absolute values, the world of economics is run on rate.
The world’s largest cryptocurrency began November at an average price across exchanges of $6,341, but as of 0:00 UTC on December 1 is trading at just $3,964, according to CoinDesk’s Bitcoin Price Index.
As it stands, the near $2,400 drop in bitcoin’s price has created a -37.4 percent monthly performance, which is its worst on record since August 2011, when it fell from roughly $8 to $4.80 to print a -40 percent monthly loss.
This may have some good impact for PC gamers:
Bitcoin miners hit hard by the cryptocurrency’s crash may be throwing in the towel.
The Bitcoin network’s hash rate, one way of gauging the computing power dedicated to mining the digital currency, dropped about 24 percent from an all-time high at the end of August through Nov. 24, according to Blockchain.com. While the decline may have partially resulted from miners switching to other cryptocurrencies, JPMorgan Chase & Co. says some in the industry are losing money after Bitcoin’s price tumbled.
A big miner shakeout could be bad news for chipmakers including Taiwan Semiconductor Manufacturing Co. and Nvidia Corp. who supply the industry, along with mining-rig designers like Bitmain Technologies Ltd. that are pursuing initial public offerings.
(Score: 1, Insightful) by Anonymous Coward on Monday December 03 2018, @03:07AM (2 children)
Is this not obvious?
For anyone who has taken a few macro econ classes, yes. Most people do not think of everything as a market (which is one of the lessons of macro economics). Money has a market, food, housing, employers, employees, etc etc etc. You name it there is a 'market' for that thing. But until you have 'run the graphs' and see how changing interest rates changes the way money is spent. Many people take 1 class of econ and think they 'got it'. So no, unfortunately it is not obvious.
Part of that bauble was access to 'cheap money'. Companies were literally borrowing money at 0% interest rates to pay out dividends and other things. This has made long term market investing 'interesting' as you can not tell which companies borrowed money to build things and which ones just borrowed to keep the dividend high. So expect a shakeout in the next few months of companies that were borrowing to stay afloat (the other I mentioned). I did not expect GM. But here we are.
Think of money as water sloshing around in a big bowl. As the bowl moves around it kind of sticks around something for a bit. Those we call bubbles. but eventually that money sloshes off the sides and comes back into something else. There will be another bubble. Should be interesting to see what it will be.
(Score: 0) by Anonymous Coward on Monday December 03 2018, @03:25AM (1 child)
My guess is education, but it will be in a long long time.
(Score: 1) by khallow on Monday December 03 2018, @04:38AM