A mass exodus has occurred in the last days of cryptocurrencies. Bitcoin, which was worth $6,000 few weeks ago is currently trading at around $4,000. Virtually all major alternatives such as ripple, ether, or bitcoin cash have also survived and are likely to suffer a collapse.
Even tether went down
Tether is considered as a one to one with the american dollar BUT together with BTC they went down.Most participants consider the severe splitting of Bitcoin cash as a cause of the collapse on November 15th. Bitcoin itself was divided before as well (back in 2017), so that’s not new in the crypto world.
Under $ 6,000, the price cant fall because no one would offer more new bitcoins. But reality is different. The new collapse clearly shows that the crypto system has no fundamental logic.
New York Economist Nouriel Roubini, who has earned a reputation as a prophet for the failure of cryptocurrencies, believes that the true value of the bitcoin is below zero – because of the high consumption of energy without economic benefit.
Demand for energy also dropped for the first time.
The Bitcoin Energy Consumption Index currently reports annual consumption of 54 twh on yearly basis as Bangladesh, a country with twice as many residents as Germany and the second largest textile producer in the world, but two weeks ago the forecast was 73 twh. Reducing energy consumption is an indicator that many miners have actually decided to withdraw from the mining business.