When the cost of mining for a substance becomes more a cost than the substance is worth then you have to cut costs, this can be by stopping mining all together or cutting staff. Today BP did just that.
Another commodity has suffered the same sort of problem, mining for Bitcoins is now at the stage where it costs more to mine for them than their actual worth.
The heady days of the $1000/Bitcoin are very much over, dipping below $180 this morning. Those who flocked to buy hardware are probably wishing they hadn’t as markets are closing and stop selling the currency.
When you take an average from when Bitcoin started until the 13th January 2015 the average price of a Bitcoin is $164.58.
BP think that the price of crude oil will stay like this for a good three years or so, perhaps the same could be said of Bitcoin, only then can we start taking it seriously as a payment currency. No one likes volatility.