The collapse of the bitcoin price also has positive facets that benefit us all
The collapse of the price of all cryptocurrencies, and bitcoin in particular, is constantly appearing in the media. Given the immense value that the entire bitcoin ecosystem had reached, there were many players interested in its value remaining sky-high. Last November 9, the bitcoin price reached $67,344, its all-time high, but since then its value fell to $18,040 on June 18.
This loss of 2/3 of its value would be a real headache for those who bought at the time of maximum price but it is possible that this collapse also has a positive side for those who did not have this crypto-asset in their portfolios.
On the one hand, graphics cards, which are essential for computers, are dropping in price at an accelerated pace since their chips were massively used by cryptocurrency miners due to their incredible numerical calculation capabilities. Right now there are thousands of graphics cards available coming up for auction because some miners went into debt at the time to buy cards that would allow them to unlock bitcoin’s algorithms when it was above $40-50,000. The prices of those graphics cards, as you might expect, are really knock-down prices.
On the other hand, bitcoin mining and the maintenance of the huge database on which the blockchain is based requires enormous amounts of energy. At the time, calculations were made estimating that the consumption of all the computer equipment that keeps cryptocurrencies alive was greater than any of the economies of small countries on the planet. That consumption has now been drastically reduced because below $25,000 it is not profitable to mine bitcoins even if you have the necessary equipment to do so.
It is not difficult to realize, however, that all this will change as soon as the value of bitcoin rises again. What is not so clear is whether that value will rise again in the crazy way it has done so far or whether the difficult economic times we are living through (and everything that is approaching) will keep the value of bitcoin within more reasonable parameters that are closer to the real use as an alternative currency for which it was designed than to the speculative instrument in which money of all origins takes refuge that we were seeing so far.