All hell is breaking loose on cryptocurrency this week. Bitcoin is currently trading at $10,805 as we write this article. Earlier on Monday, Bitcoin was trading at $14K+ and looks like investors have already lost over ~40% in a span of 2 days.
Let’s blame is on China for now. China, as we all know, is the major generator (miner) of bitcoin that requires a high magnitude of the energy-intensive process of solving complex math problems to add transactions to the Blockchain. For the novices, Bitcoin mining is estimated to use up to 4 gigawatts of electricity, equivalent to three nuclear reactors’ production levels. This is the prime reason why China’s government is planning to shut down Bitcoin miners in its latest crackdown on the cryptocurrency. It’s important to note that the crackdown is not limited to China. Government agencies in India, South Korea and across the globe have cautioned investors to stay away from the high volatility in daily bitcoin trading.
Ethereum dropped more than 30 percent since yesterday while Ripple, the third-largest digital currency by market capitalization, briefly fell 40 percent.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE