Roller coaster ride for Bitcoin as it slumps after hitting $17,000 milestone

Volatile fluctuations

After hitting a record high of $17000 earlier today, digital currency Bitcoin has crashed by 14 per cent to around $14,500.

The digital currency soared about 70 per cent this roller-coaster week, with some comparing its dramatic rise to a “charging train with no brakes”.

The digital currency has received a boost after the announcement last week by the US derivatives regulator sating it would allow CME and CBOE Global Markets to list bitcoin futures contracts.British money transfer app, Revolut, has also announced it would let customers buy and sell the cryptocurrencies Bitcoin, Ethereum and Litecoin.

ASX, the main exchange operator for equities and derivatives in Australia, has also anounced using blockchain to process equity transactions.

However, a mining website reported a theft of Bitcoins worth millions yesterday, putting a spotlight on the issue of security of bitcoins. Bitcoin 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.

Earlier this week, RBS chairman Sir Howard Davies had said: ‘Put up the sign from Dante’s Inferno — “Abandon hope all ye who enter here” — I think that’s probably what’s needed.’