However, by 5pm London time it was trading at $12,800 as the currency endured a see-saw day. “Bitcoin investors were introduced to the law of gravity over the last 24 hours … Long term holders will be used to this level of volatility but newer crypto traders could be permanently put off,” said Lawler. The Financial Conduct Authority has issued warnings about initial coin offerings (ICOs) which use cryptocurrencies to raise funds for startup businesses. Investors in ICOs pay in cryptocurrencies such as bitcoin and receive a “coin” in return, rather than shares in the company. Andrew Bailey, chief executive of the FCA, has said bitcoin is not a really currency but more like a commodity.

Source: The Guardian December 22, 2017 09:18 UTC