Roller coaster ride: Dropped as low as $12,560
The valuation of bitcoin tumbled nearly 20 per cent today following a week of warnings from global regulators and high-profile security problems at two cryptocurrency exchanges.
According to reports, Bitcoin dropped as low as $12,560 today morning in the UK, after opening at $15,600, just days after peaking to nearly $20,000 (£15,000) valuation.
Coinbase, the trading platform on which bitcoin cash launched, reportedly said it is investigating the surge in value of bitcoin cash.
Earlier this week the founder of one of the world’s largest Bitcoin sites has sold all of his Bitcoins, declaring the currency “virtually unusable”. Emil Oldenburg, chief technology officer of Bitcoin.com, had said that the digital currency is the “most risky investment you can make”, despite a recent spike in its value.
Established in 2009 after the financial meltdown, 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.