The people and institutions that chose to invest their financial resources in the bitcoin cryptocurrency have to be ready to lose everything, said Steven Maijoor, president of the European Securities and Markets Authority.
"[Investors] must be prepared to lose all their money, the extremely volatile price [of bitcoin] does not allow it to be used as a currency, and they do not admit it in many places," Maijoor said in an interview with Bloomberg TV
The bitcoin exchange rate fell 18% on January 16, 2018 to settle at $ 11,444. Its fall continued and the value of a bitcoin with respect to the dollar depreciated 2% more. To compare, on December 17, 2017, the bitcoin exchange rate broke a record after having passed the $ 20,000 barrier.
The problems with bitcoin have caused a chain reaction in the cryptocurrency market. Thus, the Ripple cryptocurrency depreciated by 33%, while the value of the ethereum decreased by 24%.
The Bloomberg agency points out that this depreciation of bitcoin is due to the possibility of regulating the cryptocurrency market in Asian countries.
Currently, the authorities of South Korea are considering the option of prohibiting the exchange of cryptocurrency. However, the South Korean finance minister, Kim Dong-yeon, stressed that, before doing so, the measure has to be submitted to "a serious discussion" between the various ministries of the Asian country.
"The South Korean finance minister made clear that they definitely consider banning the cryptocurrency trade, the news is affecting prices ...," said Neil Wilson, London's senior analyst for trading platform ETX Capital, quoted by Bloomberg.
Earlier, Reuters reported that Chinese authorities were planning to block access to the Chinese and foreign platforms in which the cryptocurrency trade takes place.
"We have heard reports that South Korea, China and Japan have considered the same approach, the path to regulation, it seems that (...) the cryptocurrency boom may be coming to an end," Wilson concluded.
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