Bitcoin (BTC) Crash causes shutdowns of mining encryption and bankruptcy

In 2017, Bitcoin (BTC) and cryptocurrency took center stage in the media as investors and Wall Street began to take note of digital currencies and blockchain. Many executives of major world banks have almost immediately knocked down digital currencies, as Bitcoin posed a direct threat to their existence.

See, Bitcoin was created to expose the currently imperfect central banking system and to completely renew the way individuals spend and send money. It is not yet known why cryptography started to take pace in the second half of 2017, but at the time some digital currencies recorded 100% gains in a single day.

Also the extraction of cryptocurrency started to rise, which became an extremely profitable business at the time. Many companies have begun to completely change their business models and focus on the digital token industry. Unfortunately, "mine" equipment is not cheap. The process of generating new cryptocurrency units by solving complex puzzles can often be expensive, due to the large amount of electricity needed. This does not even include the required hardware.

Bitcoin (BTC) Fall of 2018

In January 2018, nobody predicted the fall of BTC and the rest of the encrypted market. In 30 days, $ 500 billion was wiped out of the market. So when the price of Bitcoin fell, the extraction of BTC was no longer economically viable.

So what happens to those companies that have invested all that money in mining equipment and mining facilities at the forefront? Well, the money ends.

So far, the biggest victim of the fall of digital currencies comes from the US mining company Giga Watt. The company was forced to file for bankruptcy in chapter 11 after it was unable to pay its debts for about $ 7 million.

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A large number of global mining operations reside in China and countless mining companies have been forced to close their doors.

BRUTAL: this is what is happening now at a mining site based in China …. 😨😨 pic.twitter.com/gcN4lVTyBt

– Dovey Wan 🦖 (@DoveyWan) November 20, 2018

BTC price movement

It is not yet known what the future of the immediate price will be for BTC and other digital currencies. According to CoinMarketCap, Bitcoin (BTC) is headed for the value of $ 4,000 currently being traded at $ 4,288.66 per currency, down -4.30%.

Keep Calm and 'HODL! & # 39;

Featured image: Depositphotos / © Ukrolenochka