BitCoin took 2017 by storm with its massive upsurge in the price of 1,700% in a matter of months, now the cryptocurrency has dropped 12% in 24 hours as it faces widespread scrutiny from governments around the world.
A rumored bill that would ban trading of BitCoin by the South Korean government has added to fears and is partly to blame for its recent decline. South Korea has one of the biggest BitCoin trading markets in the world and the government has taken notice.
South Korea justice minister said the country is preparing to ban all cryptocurrency trading in the country but it is unclear why. Perhaps the massive volatility, as shown by today's decline from a BitCoin market cap of $245 billion to $228 billion has governments worried.
South Korea's justice minister Park Sang-ki told media at a press conference, "There are great concerns regarding virtual currencies and justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges."
The ban doesn't bode well for investors in the cryptocurrency, many of which have seen massive increases in wealth thanks to BitCoins massive price surge. The cryptocurrency has been on a five-day decline since January 7 when it opened at $17,527.
By January 8, BitCoin was at $16,476 and on January 9 it opened at $15,123. Trading the cryptocurrency presents a challenge for investors due to its volatility and if you don't know what you're doing you're likely to get burned.
Most people who have profited from the cryptocurrency's surge purchased the coin before its massive rise and getting in now is the equivalent of a huge gamble at the casino, especially since it faces an uncertain future.
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