Crypto Equipment Prices Falling | DN

Crypto Equipment Prices Falling |  DN

The cryptocurrency Bitcoin has declined over the past year. At the time of writing, they cost just over $21,000 each. That’s nearly 70 percent less than you had to pay nearly a year ago, when bitcoin cost roughly $66,956.

In line with the price of the coin itself, the price of the equipment used to extract it also decreases. to me The Wall Street Journal The price of the most efficient device has fallen by 77 percent in the past year.

The reason is the strong rise in the inflation rate, which last year caused the US central bank to raise interest rates several times. It has made more risky investments, such as cryptocurrencies, less attractive, and consequently the profits of companies that mine bitcoin, for example, have plummeted.

Bankruptcy before the New Year

According to the Wall Street Journal, the result for a number of companies is that they are not making enough money to cover the massive investment costs associated with extraction. Someone borrowed, Core Scientific Inc According to the newspaper Several hundred million dollars when bitcoin prices were higher to purchase equipment. Cryptocurrency mining requires extremely powerful and power-hungry hardware.

In a stock exchange announcement, the company announced that it will likely run out of money before the end of the year. The stock traded Friday for 16 cents after a 99 percent drop in price in 2022.

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Hanisi Anenih

Hanisi Anenih

"Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst."

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