Bitcoin falls $300 after Chinese crackdown

The value of Bitcoin has Dropped by $ 300 and continues to fall following a clampdown on the controversial crypto -currency by the Chine... thumbnail 1 summary

The value of Bitcoin has Dropped by $ 300 and continues to fall following a clampdown on the controversial crypto -currency by the Chinese government .

China 's central bank , the People 's Bank of China , and five government Ministries have said They do not view bitcoins as a real currency , as They have "no legal status or monetary equivalent , " and have warned local banks and businesses against Using it .

The announcement saw the crashing on the digital currency Bitcoin exchange MT.Gox from a record high of $ 1.216 to $ 870 .

The value of one Bitcoin then bounced back to $ 1.045 for a short period of time , BEFORE dropping again to less than $ 660 on the night of December 7 .

France 's central bank also limits some harsh words to say about Bitcoin this week , calling it an unreliable and risky means of investment .

" The system cans collapse at any moment , if Investors want to Unwind Their positions but find themselves holding illiquid portfolios that's have Become , " the French bank said.

However, Bitcoin continues to Garner support in the U.S. , with Bank of America Merrill Lynch predicting a bright future for the virtual currency.

" We believe Bitcoin cans Become a major means of payment for e -commerce and may emerge as a serious competitor to traditional money transfer providers, " a report Issued by Merrill Lynch said Friday . " As a medium of exchange, Bitcoin has clear Potential for growth , in our view . "

Earlier this week , the U.S. saw another big buy bitcoins as made ​​via an anonymous buyer from Florida purchased a luxurious Tesla Model S sports car for 91.4 bitcoins ( $ 103,000 ) .

As a virtual currency , Bitcoin was invented by a man Using the alias ' Pokemon Nakmoto ' in 2008. It Allows users to exchange online credits for goods and services.

While there is no central bank issues that's bitcoins , They cans be created online by Using a computer to complete Difficult tasks, a process known as mining.

Some 12 million bitcoins are believed to be in circulation, with a cap of 21 million , meaning no more bitcoins cans created after that's point .

Info: rt.com

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