Cryptocurrencies are making computers more expensive

The rush on bitcoin and other digital currencies has an unwanted side effect

A Nvidia graphics processing unit.
(Image credit: RITCHIE B. TONGO/EPA/REX/Shutterstock)

Unless you've been hiding under a rock, you've probably noticed the spike in interest in cryptocurrencies. If you need a quick refresher, a cryptocurrency is a kind of decentralized digital or virtual money. It is highly encrypted, so it can't be tracked or traced or stored in your favorite banking institution. You can't put it in your pocket like a dollar bill, and most coffee shops won't accept it as payment, but it still has value. Sometimes, a lot of value. For instance, one of the most popular cryptocurrencies is bitcoin, and one bitcoin is currently worth about $8,500.

The cryptocurrency market is huge. According to Forbes, it is worth about $400 billion right now. But it's also incredibly volatile. Bitcoin, for example, recently lost an excruciating 70 percent of its value. It plummeted from a high of $20,000 to below $6,000, and then slowly inched back up to its current position. Since the start of 2018, the entire cryptocurrency market has lost more than $200 billion.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us
Lana Bandoim

Lana Bandoim is a freelance writer and editor. Her work has appeared on Yahoo! News, CNN iReport, The Huffington Post, Lifescript, Healthline, and many other publications.