Originally the trailblazer for all other cryptocurrencies, Bitcoin isn’t doing so hot. The value of Bitcoin has dropped 16% to $4,200.22, the lowest value of the currency since September of last year.
It’s a sudden and drastic change; just last month, Bitcoin was trading around $6,400 a pop, a comfortable sum. But as the worldwide markets become more volatile, the currency can’t seem to keep its footing. The Securities and Exchange Comission has begun cracking down on cryptocurrencies with several new civil penalties for their founders. After the initial drop below $6,000, many investors began to panic and sold off their Bitcoins, causing the value to drop further in a chain reaction.
Several financial experts have written off Bitcoin entirely, dismissing it as a fad or even an obtuse pyramid scheme. European Central Bank Executive Board member Benoit Coeure, in a quote to Bloomberg, called Bitcoin “the evil spawn of the financial crisis.” Back in June, BIS head Agustin Carstens said that cryptocurrencies are “in a nutshell, a bubble, a Ponzi scheme and an environmental disaster.”
As of noon today, Bitcoin did manage to recoup about $400 of its value, so this could merely be a momentary slip and panic. Still, with the market as unstable as it currently is, it’s anyone’s guess where the chips will fall next.
