The value of Bitcoin plummeted by 12% to under £5,700 yesterday before recovering in the afternoon and currently trading at around £6,500. Overall Bitcoin lost around 28% of its value in January this year.
The value dropped following raids on the office of Coincheck who were hacked a week ago leading to the loss of £350 million worth of a cryptocurrency known as NEM, across the board cryptocurrencies have lost value.
Regulation of cryptcurrency is another concern coupled with speculation that India could ban trading on virtual currencies entirely. It turns out that India are only likely to ban the use for illegal activities but they are the still first country to suggest a crackdown on the use of cryptocurrency which impacted values.
Korea are another country which are taking steps to regulate and restrict trading again with a potential outright ban. It also doesn’t help that Facebook have banned adverts for cryptocurrencies, which appear to be facing troubles at every turn.
Cryptocurrencies and in particular Bitcoin appear more suited to investors (or perhaps speculators would be a better term) than for ecommerce thus far.
For more indepth analysis, read our article published earlier today examining why retailers should consider the risks carefully before adopting Bitcoin as a payment option.