Use of cryptocurrency under scrutiny in the island of Bali
The price of Bitcoin has witnessed a ‘bloodbath’ in the last few weeks with dramatic fluctuations.
However, its valuation recovered today to $11,000 (£7,900), after hitting below $10,000 (£7,187) earlier this week.
Analysts believe that the cryptocurrency’s volatility is likely to continue amid reports that the governments of China and South Korea were looking to ban trading of cryptocurrencies.
The latest nation considering a cryptocurrency crackdown is Bali. According to Reuters, Indonesian authorities are investigating the use of bitcoin in the holiday island of Bali, amid warnings by the central bank in Southeast Asia’s biggest economy over the risks posed by virtual currencies
Earlier this week, former Wells Fargo Chairman and CEO Dick Kovacevich told media how bitcoin was a scam: “I think it’s a pyramid scheme. It makes no sense. I’m just surprised it isn’t even lower
Established in 2009 after the financial meltdown, Bitcoin is a digital currency that has no central bank or regulatory authority backing it up. The digital coins are stored in a digital wallet or on the cloud and can be used in transactions.