After peaking at more than $19,000 in December, Bitcoin’s value plummeted to below $6,000 this week, according to CNNMoney. Bitcoin, an unregulated and decentralized form of digital currency that was released in January 2009 by an anonymous individual or group using the alias “Satoshi Nakamoto,” is particularly attractive because it allows two parties to easily transfer funds.
Investopedia defines cryptocurrency as “a digital or virtual currency that uses cryptography for security.” Renowned investors Warren Buffett and Alan Greenspan have denounced cryptocurrencies and labeled them glorified Ponzi schemes. The primary criticisms of Bitcoin are its susceptibility to hacking, theft and dramatic price fluctuations. Moreover, the digital currency is ideal for shadowy figures that partake in nefarious activities like money laundering and tax evasion.
The number of cryptocurrencies available online skyrocketed in 2017 and new types of digital and virtual monies are constantly being presented to the public. Bitcoin, also used as a global payment system, slightly rebounded and is now above $7,000.