The value of bitcoin has fallen sharply again. This happened after the Chinese government announced that it would crack down on the cryptocurrency trade and mining.
That is the validation and recording of payments in the blockchain, where miners have a chance to win new bitcoins.
The price of bitcoin has fallen by about 10 percent to about $ 36,000 in the past 24 hours. As a result, bitcoin’s value has nearly halved since the record high in mid-April, and hundreds of billions of dollars in the market value of the world’s best-known crypto have since been lost.
The extreme price fluctuations of cryptos, which are therefore known, also caused a stir on the stock markets on Wednesday. The value of bitcoin and other crypto coins such as ethereum fell sharply on that day after the Chinese central bank reiterated that crypto coins could not be used to pay. The Chinese central bank also warned against speculative trading in crypto coins. Bitcoin rallied in value later in the day following comments from outspoken advocates of digital currencies.
Last week, the price of bitcoin also fell sharply after Elon Musk announced that his company Tesla would stop accepting payments in bitcoin for environmental reasons. In February, Tesla announced that it would be possible to pay with bitcoins at the American car company. It was also announced at the time that Tesla had made a $ 1.5 billion investment in bitcoins.