Bitcoin price crash LIVE – Cryptocurrency market plunges AGAIN amid China crackdown plus Ethereum and Dogecoin updates

THE cryptocurrency market has plunged once again as China cracked down on cryptocurrency mining.

Bitcoin is currently sitting at around 50% of its all time high, although a small rebound this morning saw its value rise from $32,000 to $36,000.

The Ethereum, Cardano and Dogecoin currencies are also suffering though all three remain significantly up on where they were at the start of 2021.

The market turmoil comes after China launched a cryptocurrency crackdown, which has led to top mining companies shutting down.

Mining for cryptocurrency isn't actually a physical enterprise, rather it involves extremely sophisticated computers figuring out complicated maths problems in order to process crypto transactions.

Roughly 70% of all the world's cryptocurrency mining takes place in China.

There are serious environmental concerns about the amount of energy required to carry out these transactions – something China is using as the framework for launching its crackdown.

Read our cryptocurrency live blog below for the very latest updates…

  • John Hall

    WHAT IS HUMMINGBIRD FINANCE?

    Hummingbird Finance is a new cryptocurrency token, which launched in April 2021.

    It’s a smart contract, or program, built on the Binance Smart Chain blockchain network.

    Blockchain technology is at the heart of most cryptocurrencies, including Bitcoin. It can seem complicated, but it’s a kind of database used to record transactions.

    Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, told The Sun: “Hummingbird’s founders promise to use proceeds from the token to help finance charities to protect the species in the wild and spread awareness.

    “But this promise can’t easily be verified, and the way the token works rewards holders for not selling their tokens, and taxing those who do.That raises suspicions of an aim to simply drive up the price on a wave of speculation and so traders would be wise to treat the token with extreme caution.”

  • John Hall

    HOW DOES BITCOIN GROWTH COMPARE TO STOCKMARKET INVESTING?

    Bitcoin’s value has grown by 723% over the past year and 181.2% over five years, according to data from DIY investment platform Interactive Investor.

    In contrast, the next best performing asset over the past year is emerging market shares, which are up 42.3%.

    Developed market shares are up 14.3% over five years.

    On paper that makes Bitcoin a higher performing asset than other investments.

  • John Hall

    CRYPTOCURRENCY NOVICE GOT £185,000 BITCOIN IN HIS ACCOUNT BY MISTAKE

    A NOVICE crypto investor has mistakenly received £185,000 worth of Bitcoin after trading platform BlockFi sent hundreds of users incorrect promotional payments.

    Crypto lender and trading platform BlockFi has admitted it made incorrect transfers to around 100 investors and has asked for the money back.

    Read more here.

  • John Hall

    CRYPTOCURRENCY NOVICE GOT £185,000 BITCOIN IN HIS ACCOUNT BY MISTAKE

    A NOVICE crypto investor has mistakenly received £185,000 worth of Bitcoin after trading platform BlockFi sent hundreds of users incorrect promotional payments.

    Crypto lender and trading platform BlockFi has admitted it made incorrect transfers to around 100 investors and has asked for the money back.

    Read more here.

  • John Hall

    HOW THE VALUE OF BITCOIN HAS CHANGED OVER THE YEARS

    The value of Bitcoin has fluctuated since it was launched in 2009.

    • 2009-2011: One Bitcoin was equal to about one US dollar
    • 2013: Bitcoin rises upward to $1,242
    • 2014: Bitcoin falls to $530
    • 2017: Bitcoin rose to $13,800 by the end of the year
    • 2018: Price dropped to around $6,000 before halving again to around $3,000
    • 2020: Started at $5,000 before ending the year around $28,000
    • 2021 January: Bitcoin around $36,000
    • February: Bitcoin around $50,000
    • March: Bitcoin around $60,000
    • April: Bitcoin soaring above $62,000
    • May: Bitcoin tumbles to $39,790

    EXPLAINED: HAS CHINA BANNED CRYPTOCURRENCY?

    China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions.

    They have also warned investors against speculative crypto trading.

    Under the ban, these institutions, like banks and online payments channels, must not offer clients any service involving cryptocurrency.

    This includes registration, trading, clearing and settlement

    Although China has banned crypto exchanges and initial coin offerings – they have not barred individuals from holding cryptocurrencies.

    WILL THE CRYPTOMARKET RECOVER?

    Cryptocurrency markets went down dramatically wiping billions from their value.

    Bitcoin and Ethereum prices plummeted to their lowest since last year after months of record highs for the digital coins, highlighting just how unpredictable they are according to experts.

    Read more here.

    ELON MUSK ‘SUPPORTS’ CRYPTO OVER FIAT CURRENCY

    Tech billionaire Elon Musk shared his support for cryptocurrencies over legal tender.

    Reacting to last weeks backlash after one person asked him about the anger he faced, Musk tweeted: “The true battle is between fiat & crypto. On balance, I support the latter.”

    HOW DOES BITCOIN WORK?

    To process Bitcoin transactions, a procedure called “mining” must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution.

    For each problem solved, one block of Bitcoin is processed. In addition, the miner is rewarded with new Bitcoin.

    To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of new Bitcoins are produced each day.

    There are currently about 21million Bitcoin tokens in existence. To receive a Bitcoin, a user must have a Bitcoin address – a string of 27-34 letters and numbers – which acts as a kind of virtual postbox.

    These addresses are in turn stored in Bitcoin wallets, which are used to manage savings. The bulk of Bitcoin “mining” is done in China, where energy costs are cheaper than in places like the UK or US.