At press time, bitcoin is trading for roughly $7,460, meaning there’s no change in its overall price. It’s a good sign in the sense that bitcoin hasn’t dropped any further – the current price is a $200+ drop from its recent $7,600 high – though it’s disappointing that bitcoin is still struggling to surpass present resistance levels.
A new report suggests that bitcoin has already “died” multiple times, incurring its 62nd death earlier this year, and that the latest one is occurring on the 300th anniversary of its first death. In addition, the currency has lost approximately $2,600 in its value since the 200th anniversary of its first death in December of last year, and many critics are now claiming the cryptocurrency is “doomed to fail.”
As stated in Forbes, this is all due to an “Achilles heel” in bitcoin’s mining operations. The source suggests that bitcoin’s mining methods are more expensive than one might assume, and that as bitcoin has gained popularity, mining has become much more difficult, as those extracting new coins are working to ensure bitcoin isn’t overproduced in some way.
It goes on to state that more powerful computers will be needed for mining to continue, which means more energy consumption and higher prices for both consumers and miners alike, and the costs may outweigh the benefits sooner than anticipated.
The added costs and energy usage could potentially make it difficult for bitcoin to retain its value. In addition, the currency cannot be shut down by government authorities due to its decentralized nature, though increased energy consumption could change this if we’re not careful.
This new report is emerging just 24 hours after Steve Wozniak’s recent praise of bitcoin. In an interview with CNBC, the computer mogul announced that he hopes bitcoin can become a single, global currency, and that it’s the equivalent of “digital gold.” Wozniak called bitcoin “pure,” and admits that while he’s not invested in it, he admires its imposed limited supply, which makes it less vulnerable to problems often faced by both gold and USD.
In addition, Wozniak also called for further regulation efforts, and said they were crucial to bitcoin’s survival. Ironically, new regulation has appeared on the horizon in the form of Valerie Szczepanik, who will serve as a senior cryptocurrency advisor to the Securities and Exchange Commission (SEC). The organization is continuing its work in the fight against market volatility and fake initial coin offerings (ICOs), and Szczepanik will take on a “big role” when it comes to deciding future regulation’s direction.
SEC Chairman Jay Clayton recently announced:
“With her demonstrated skill, experience and keen awareness of the importance of fostering innovation while ensuring investor protection, Val is the right person to coordinate our efforts in this dynamic area.”
In the meantime, bitcoin is still experiencing very weak support levels at $7,300, and another bearish decline could occur in the short-term. Current resistance is set at $7,600, which once broken, could potentially take bitcoin up to the $7,700 mark granted the price is able to pick up momentum soon.