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The bitcoin mania is sinking over the years amid its lack of opportunity to work as a real resource. Cryptocurrencies have no intrinsic value, nor do they offer cash flow, leading analysts to raise concerns about its potential to work as a resource.
In general, activities drive their value from expectations related to revenue generation and cash flow. In the case of cryptographic coins, they only move on merchant expectations. Some lover of cryptocurrency claims that it is like gold that only leverage consumer wishes.
Bitcoin (BTC) Price today – BTC / USD
Warren Buffett, the leading investor in the stock market, has strongly criticized bitcoins and other virtual currencies. He argued that the cryptocurrency market would end at zero due to the lack of a fair value concept. The stock exchange expert says that buying bitcoins is not an investment; Warren Buffett says that cryptocurrencies produce nothing like corporations or another resource.
"You only hope that the next pay more. And just feel that you will find the next one to pay more if you think that you will find someone who will pay more", Says Warren Buffet.
The price of bitcoin drops below its cost of extraction
Several investors thought the bitcoin price would come to $ 1 million in 2018. But the price of Bitcoin had a big turnaround after it hit the all-time high of $ 20,000 at the end of last year. The price of BTC has plummeted since the beginning of this year; the flagship cryptocurrency has lost 80% of the value of the historical maximum of the last eleven months.
Source: coinmarketcap.com
The price of the largest currency fell below the break-even level of $ 6,000 in November, due to uncertainty and lack of clarity regarding the future fundamentals of the cryptocurrency markets.
The decrease in the price of bitcoin below its cost of extraction makes bitcoin extraction useless. Miners are suffering huge losses considering the current price of $ 4000 per bitcoin. This situation indicates that miners would not sustain their business for a longer period if the top cryptocurrency continues its downward volatility.
Bitcoin is likely to die
Bitcoin could die at any time in the future if its price continues to trade significantly below the breakeven level. The lack of value of the store and the failure to function as a means of exchange is another factor that is damaging its ability to prosper in the long run. Bitcoin is built to compete with legal currencies and move the global financial world to the decentralized currency system.
Excluding a few names and online shopping sites, companies around the world have denied the acceptance of bitcoins and other cryptocurrencies due to significant price volatility. Bitcoin has the potential to make big price swings in a single day, which makes it difficult for the buyer and the seller to use it as a medium of exchange.
