This is why the price of bitcoin has dropped to $51,000
On CoinMarketCap, bitcoin has fallen below $51,000. This website monitors a number of cryptocurrency exchanges. Previously, Bitcoin’s all-time high was more than $60,000. The value of the digital currency Ethereum has also fallen. On hearing about Tesla, Dogecoin value also plunged.
Bitcoin is based on the blockchain, a kind of collective logbook in which all parties collectively document all transactions. Every ten minutes, a new “page” is added to this logbook with the latest updates.
To securely manage each record, a complex mathematical formula must be solved. Unique computer programs tinker all day long all over the world. This is referred to as mining. Solvers of the formula are rewarded in bitcoin. Mining costs a lot of energy resources.
In February, Tesla bought Bitcoin for $1.5 billion. The company will not sell those shares. Tesla intends to use the money for purchases until the coins can be mined with friendlier energy sources. Other crypto coins that use less fossil fuels are being considered by the group.
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