Bitcoin crashes as China refuses to trade
The value of the bitcoin currency has crashed in the wake of news from China that the nation’s largest bitcoin exchange will no longer accept new deposits.
The value of the currency has dropped
The value of the currency has dropped from ¥7,395/£741.70 down to ¥2,630/£266.02.
“China's central bank warned in early December that bitcoin was not legally protected and had no "real meaning", and barred financial institutions from using the currency,” the Guardian reported.
The Chinese central bank said that individuals are free to trade in bitcoin “at their own risk”.
“That raises doubts about the future of bitcoin. The large boom in value that the currency has seen this autumn is widely thought to be a result of Chinese users adopting it. As Chinese support has since waned, so too has the price,” the Guardian said.
Bitcoin has benefitted from an exponential uptake. Earlier this month a Manchester PR firm began accepting payments in bitcoin, which it valued as equivalent to an ounce of gold.