In recent days Bitcoin trading has not seen prices get past $48,000 suggesting demand has sagged. Swindlers have really made it hard for people to like Bitcoin etc. Given most younger people are into Bitcoin and a lot of comments are warning of swindlers.
Other top cryptocurrencies are also down, including ether, the second-largest cryptocurrency. Ether is currently trading at around $3,813. As of Monday morning, 90% of the total bitcoin supply of 21 million has been mined, according to data from Blockchain.com. That does not reflect the number of bitcoins lost either. Many miners are concerned that a flood of worthless video cards will hit the market in 2022.
The stock market also sold off suggesting expected rate hikes are coming in 2022. Dow futures are presently indicating Monday will be more selling. Also the COVID-19 saga has been a concern many are concerned out given the delta variant and omicron is spreading fast.
Fear over the very rapid spread of omicron in the EU has led to panic. The UK has so far been the hardest hit in the region, with nearly 15,000 confirmed Omicron cases on Friday. Additional restrictions were announced in Germany, the Republic of Ireland and the Netherlands on Friday as governments seek to stem the tide.
Speculation that Bitcoin may fade out is driven by other digital assets that are less energy intensive making them more palatable.
When ETH goes to proof of stake this will upset the mining ecosystem significantly. Right now June 2022 is penciled in for the change from proof of work to proof of stake. This will result in changes that will move mining to other assets and with current valuations it could result in a 70% reduction in earnings. This has dominated discussions and it suggests that a torrent of used video cards will hit the market.