The price of Bitcoin is showing signs of recovery, following a sad two-week period that has canceled up to 17% the value of the cryptocurrency.
On Wednesday morning, the value of a Bitcoin increased by 9% in the previous 24 hours, reaching a value of $ 4,050 at the time of writing. As usual, other cryptocurrencies have tracked the change, with XRP up 7.7%, Ether up 10.1% and Bitcoin up 5.3%.
This is Bitcoin's biggest daily jump since July, but it's worth noting that cryptocurrency also broke out after a continuation of its weekend crash that fell 82% from its peak of nearly $ 20,000 a year does.
Cryptocurrencies like Bitcoin are "extracted" using powerful computers that deal with one another to win those that are essentially games of guessing numbers, with each round progressively harder than the previous one. This process is expensive in terms of both computing power and electricity consumption – hence the atrocious environmental impact of Bitcoin – and therefore virtual currency is now firmly in the area where it may not be worthwhile to continue to create it.
At the start of this year, various analysts estimated that the break-even point for miners was a Bitcoin value somewhere north of $ 8,000. Before the most recent crash, cryptocurrency was around the $ 6,000 threshold for some time, so it has long been in jeopardy.
However, Mohamed El-Erian, Allianz's chief economic adviser, said at a Tuesday conference that he believed cryptocurrencies were here to stay despite the current crisis and the subsequent retreat of retail investors.
"I think cryptocurrencies will exist, they will become more and more widespread, but they will be part of an ecosystem They will not be dominant as some of the early adopters believed they were," El-Erian said, according to Reuters.