Bitcoin hits a four-week low before rebounding on Tuesday as South Korean statements send cryptocurrency markets yo-yoing
The price of bitcoin was sent plummeting 18% as it and other cryptocurrencies yo-yo in value over fears of a wider trading crackdown spurred by renewed potential of South Korean regulatory action.
Bitcoin’s slide of over over $2,200 triggered a massive selloff across the broader cryptocurrency market, with biggest rival Ethereum down 23% on the day, according to trade website Coinmarketcap, and the next biggest, Ripple, plunging 33%.
Bitcoin is the first, and the biggest, “cryptocurrency” – a decentralised tradable digital asset. Whether it is a bad investment is the big question. Bitcoin can only be used as a medium of exchange and in practice has been far more important for the dark economy than it has for most legitimate uses. The lack of any central authority makes bitcoin remarkably resilient to censorship, corruption – or regulation. That means it has attracted a range of backers, from libertarian monetarists who enjoy the idea of a currency with no inflation and no central bank, to drug dealers who like the fact that it is hard (but not impossible) to trace a bitcoin transaction back to a physical person.
Link : Bitcoin and Ethereum tumble after renewed fears of regulatory crackdown