Bitcoin, Ethereum and Coinbase values ​​in free fall after China banned all cryptocurrencies

The values ​​of Bitcoin and several other cryptocurrencies plummeted after the Chinese government decided to ban their use.

Bitcoin and similar virtual currencies such as Ethereum, Cardano and Dogecoin exist purely as software. There is no Bitcoin banknote, just a code that is stored in the user’s digital “wallet”.

The prices of various cryptocurrencies have risen sharply in recent years, but while a bitcoin was worth over £ 42,000 in May, it’s now valued at just over half that.

Tesla CEO Elon Musk went a little way last week to burst the Bitcoin bubble when he announced that the company would no longer accept virtual currency for vehicle purchases, citing the “rapidly increasing use of fossil fuels for.” Bitcoin mining “.

You can’t hold Bitcoin, it only exists as a block of code

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Bitcoins are created by “miners” who use their computers to verify Bitcoin transactions around the world – with immense amounts of computing power that in turn consumes a lot of electricity.

Bitcoin’s price fell about 5% in the first few minutes after Musk’s announcement.

The SpaceX supremo also took part in a Saturday Night Live show over the weekend, in which Dogecoin was only described as a “crush”.

Today’s announcement from China means that financial institutions will no longer be allowed to trade the digital currencies.

The meme-inspired currency, Dogecoin, was particularly hard hit

The meme-inspired currency, Dogecoin, was particularly hard hit

The main concern of the Chinese government appears to be a possible crash in virtual currency prices after a period of intense speculation.

“Recently, the prices of cryptocurrencies have skyrocketed and fallen, and speculative trading in cryptocurrencies has rebounded, seriously violating the security of people’s property and disrupting normal economic and financial order,” an official said Explanation.

Last day, Bitcoins plunged nearly 22%, while rivals Ethereum and Dogecoin lost 40% and 45%, respectively.

Digital currency mining is a slow and complicated business

Digital currency mining is a slow and complicated business

Ipek Ozkardeskaya, senior analyst of the online trading platform Swissquote, told Yahoo News: “From a technical point of view, the indicators are flashing red.”

The shares of Coinbase, the main US crypto exchange, fell over 10% at the start of trading.

The values ​​of currencies are based entirely on what people are willing to pay, with no intrinsic value or government support

Edward Moya of foreign exchange firm Oanda Corporation told The Guardian: “Coinbase is going to go down as one of the worst direct listings ever.

“Coinbase is being crushed as crypto markets collapse. The global crypto market is down over 25% today alone and this crash does not bode well for attracting new customers.

“Coinbase wants new crypto traders, but many will fear that this Bitcoin crash could end in the same way as that of 2017.”

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