Bitcoin Battered

Cryptocurrency Bitcoin’s value has now dropped to $6,000, a fall of $13,000 since November 2017.

What Is Bitcoin?

Bitcoin is a digital web-based currency that operates without the need for central banks and uses highly secure encryption to regulate the currency units and to verify transfers of funds. Bitcoin, which was first produced in 2009, uses the ‘Blockchain’, an open and programmable technology that can be used to record transactions for virtually anything of value that can be converted to code and is often referred to as a kind of ‘incorruptible ledger’.

In order to receive a Bitcoin, a user must have a Bitcoin address i.e. a ‘purse’ (of which there is no central register).


Warnings of a Bitcoin ‘bubble’ were being delivered last year after its value rocketed from $1,000 to £19,000 in the space of less than a year.

Why The Fall In Value?

Several factors have led to the rapid fall in value since November last year. These include:

What Does This Mean For Your Business?

From an investment point of view, Bitcoin is clearly risky. There are other cryptocurrency alternatives e.g. Ripple, Ethereum, Litecoin, but they all appear to have been tarred with the same brush as Bitcoin, particularly with the announcement that credit cards can’t be used to buy them.

Many of the possible advantages of cryptocurrencies to businesses e.g. to use for fast global trading and investing outside of bank controls, delays and red tape, are currently being overshadowed by the actions of banks and governments.

Cryptocurrencies may be currently in a dip, but the importance of other new technologies to businesses such as AI and driverless vehicles is finally being reflected in the value of the shares of companies who are leading the charge in those technologies, which are likely to provide many global business opportunities going forward.