In response, the price of a single bitcoin - the world's premiere digital currency - has plummeted.
Capital noted that even if the bubble does burst it should not have too great an impact on the global economy because the amount of money invested in cryptocurrencies is still relatively small and they are not held by institutions.
The final use of bitcoin and other cryptocurrencies, of course, is to evade government oversight and dodge law enforcement.
More than $200billion was wiped off the crypto markets because of fears of the cryptocurrency trading ban in South Korea. In the short term, that could cause its value to drop drastically (like what happened in China and South Korea), but in the future it could help calm down speculation and drive out the types of sketchy Bitcoin-related business that threaten to drag down the entire concept of cryptocurrencies.
Bitcoin services rose to prominence mid a year ago, as investors looked for ways to gain exposure in the booming cryptocurrency space.
As I pointed out in my first op-ed on the bitcoin bubble, there is no "there" there in cryptocurrencies, with the possible exception of some initial coin offerings (ICOs). Bank Indonesia has deemed cryptocurrency transactions "illegal".
He added that shutting down digital currency exchanges is "a live option but government ministries need to very seriously review it".
An online petition on the presidential office's website has drawn more than 210,000 requests from people asking the government not to ban trading in digital currencies.
The price of Bitcoin has gone through the roof recently, leaving a lot of people feel that it is too expensive for them to buy.
Investors may also have been spooked by its lending and exchange platform on Tuesday.
In the last days, the new that South Korea might sway cryptocurrency prices has made investors sell out, even if the process remains vague.
In hindsight, if you were a speculator simply looking to make a quick buck without any care about fundamentals, a good time to buy bitcoin was when its price action showed a clear uptrend in price, which was over most of a year ago. The steep decline has also affected other major cryptocurrencies, including Litecoin, Ethereum, and Ripple.
The China-based NEO, which was launched in 2014 originally as AntShares, is forecast to hit USD225 by the end of the year.
Coin Stats. This app is free and it offers you the ability to track Bitcoin and Bitcoin investments.
Just when you thought it might be over for Cryptocurrencies with inflated valuations coming back to earth with a bump - then values start to rise again....at least for a while. Prices of coins have always fluctuated and always come back stronger. Investors were pouring into Bitcoin exclusively because it was going up in price, creating a speculative bubble.