One of the side effects of bitcoin has been an elevation in the prices of high-end video cards normally intended for gaming. In order to mine bitcoins, miners have been buying video cards in great quantities.
Now though, it appears gamers will be soon be getting some relief as the modern day version of tulip mania implodes:
Bitcoin is only 10 years old, but the cryptocurrency has already seen its fair share of bear markets.
The most recent one, which some are dubbing “crypto winter,” worsened over the weekend. The cryptocurrency slid below $3,500 for the first time in 14 months, then later recovered toward the $3,900 level by Monday, according to data from CoinDesk. That brings its decline from last year’s peak to more than 81 percent.
That loss isn’t the worst bitcoin has suffered, but the world’s largest digital currency is getting close.
Measured in dollars, this year’s damage has been much more significant. Roughly $700 billion has been wiped off cryptocurrencies’ global market capitalization since the high, according to data from CoinMarketCap.com. The price of one bitcoin has dropped more than $15,000 since December.
Trading volumes are also down drastically. Bitcoin’s 24-hour volume was near $49 billion at the peak, and as of Monday was down 61 percent, to $19 billion.
Even some bitcoin bulls are anticipating more short-term carnage.