In the past four years, the value of a single bitcoin has soared from approximately $500 in 2014 to a current value of $6,000 and has worked its way into every type of financial transaction, from buying phone credits to shopping for clothes online.
Bitcoins are worth less than half of what they were in December. Mining them is 60 percent less profitable than it was in 2017. Even retailers of hobbyist mining rigs say they are seeing fewer customers.
Bitcoin tumbled about 20 percent Tuesday. The price of the volatile digital currency dipped below $11,000 around 5 p.m. ET on Tuesday, its lowest level in more than a month, according to data from CoinDesk.com.
Bitcoin’s vertiginous ascent showed no signs of abating on Monday, with the cryptocurrency soaring to another record high just a few percent away from $10,000 (£7,493.59) after gaining more than a fifth in value over the past three days alone.