During late 2017, the price of Bitcoin was rocketing sky high. It was the best time to get into Bitcoin, but recently Bitcoin has been tanking. Bitcoin is yet to experience its worst week ever since April 2013.
On Friday, Bitcoin fell below $7,910 on the Bitstamp exchange after a 12% fall the day before. Over December, the virtual currency reached $19,000 , which now tanked all the way down to $7,910. Last year, Bitcoin started trading at $1000, and saw a rapid increase in the price which dropped far down from it’s highest price. Despite how much it’s dropped recently, it’s still far above the $1000 level which it started trading last year.
Cryptocurrencies are largely untested and unproven, they are like teenagers – young and unpredictable. On Friday, Japan’s financial regulator carried out a surprise check on Japanese exchange Coincheck. The regulator said it asked fro the exchange to fix it’s flaws in its computer networks long before last week’s $530m theft by hackers.
Facebook also said recently that it will ban adverts for digital currencies while China and South Korea banned any new virtual currencies and have been shutting down exchanges on which they traded. UK’s Financial Conduct Authority warned investors in September that they could lose all their money if they buy virtual currencies issued by firms known as “initial coin offerings”.
Bitcoin is the most widely traded cryptocurrencies in the world, but there are others which also fell on Friday, according to the Coinmarketcap.com price checker. The second and third largest cryptocurrencies, Ethereum and Ripple increased by more than 20% before a slight drop in the price.