Generating bitcoin costs more money than the value of cryptocurrency. Producing a single bitcoin is now worth an average of $ 4060, but the value is less than $ 3,500, according to an analysis by JPMorgan Chase.
Bitcoin relies on volunteers to process transactions. Their computers compete to solve math puzzles every 10 minutes. Find a solution to process a number of transactions and anyone whoever gets there first is rewarded with some bitcoin.
Buying and running these computers is expensive. The more people join in the race, the puzzles become more difficult to solve, need more computer power. It is estimated that the bitcoin network uses as much energy as Ireland.
— Darnell Clayton (@Darnell) February 6, 2019
Bitcoin prices have fallen in recent months from a high of almost $ 20,000 in 2017. The result is transaction processing is no longer profitable. However, this might cause people to get out of the race, making it easier and economically feasible.