Bitcoin is a cryptocurrency and we have been following it for quiet some time now.
(If you want to know what they exactly are, click here.)
We have taken you to the highs and lows of the currency. But we are back, again with an update.
On Tuesday, the cryptocurrency hit a six-week low (below USD $12000). The reason predicted is that a few countries are trying to stop the regulation of Bitcoin.
Bitcoin hit its epitome, one coin was around $20000 (USD) but it lost 20 percent soon after its rise. And now, it has fallen to USD $12k, which the currency has not seen since December 2017. It has been hit by a 40 percent drop in its value, a new low for the cryptocurrency. Along with this top dog, other cryptocurrencies like ethereum, ripple and bitcoin cash, have reported to have a double-digit loss in their values (by Tuesday afternoon).
According to cryptocurrency analysts, this descent in the value was foreshadowed, by a few countries implementing to ban the cryptocurrency exchanges. China and South Korea are the frontrunners of regulating the virtual currency, and they have decided to target a crackdown against the exchanges. The justice minister of South Korea is preparing a bill to shut down the country’s cryptocurrency coin exchanges, because it had caused a frenzy amongst the pubic and was turning more towards gambling (and speculation).
The virtual currency is known (and bought) worldwide but the hotbed of its trading while China carries the most number of miners (people who create the currency via computer). Since these two countries are the focal point of this currency, a downhill progression will happen, if they start to ban and objectify Bitcoin. With reports on a renewed crackdown on the crypto-currency in China fueling anxiety over future restrictions, further losses could be on the cards in the near term.
Most analysts are claiming that this might work as the last nail in the coffin of the cryptocurrency.