Bitcoins exchange value plunged down, following the announcement from China’s largest virtual currency exchange BTC China, that it would no more accept deposits in countries local currency – Yuan.
The much hyped Bitcoin has lost its value more than half in this week compared to the highest around $1,200 in last November. Bitcoin is now trading at around $450-$500 mark. BTC China announced this in official Weibo account (Weibo is Twitter like micro-blogging service in China).
Alan Silbert, CEO of BitPremier LLC, a luxury homes and high-end goods website said,
“Obviously, this is going to be one of the ongoing challenges with an early-stage, technology-based currency.”
Bitcoin was a volatile virtual currency and the growth of the currency value was hoped to jump up to 1 million per coin (never mind!) by few analysts. Most of the people might got interested in investing on Bitcoin for the future earnings, but the decision by the large exchange has played key role in the decline, similar to the China’s decision of not accepting Bitcoin or any other virtual currencies at any banks in China.
Recently, Denmark’s Financial Supervisory Authority and Norway also questioned the existence of Bitcoin and resisted to accept the currency. Even Central bankes and regulators from France and European Union also issued warnings about negative effects of Bitcoins to security via money laundering. Currently, U.S. has not objected the Bitcoin, but in near future, it would also come with a rule, may be!
It looks like, that consumer, who bought the Tesla Model S using Bitcoin has got some relief! What is your point of view on the current ongoing situation around virtual currencies?