Bitcoin’s market price has plummeted in the latest cryptocurrency crash to impact other leading digital tokens in the crypto universe.
Following a year of record highs and significant drops in value, the leading crypto is now trading 11.90% down in the last 24 hours (12noon, 13 June 2022).
Russia’s invasion of Ukraine was the latest of a long line of outside factors impacting the price of Bitcoin brought to light by Tesla CEO Elon Musk’s concerns around its controversial mining process and El Salvador establishing it as legal tender.
What is the price of Bitcoin today?
As of 12noon (UK time) on 13 June 2022, one Bitcoin is priced at £19,700.
This is 11.90% down on the last 24 hours and is in line with the overall crypto market crash of 13.88% in the same time period.
As leading cryptocurrency, Bitcoin often sets the tone for the rest to follow with Ethereum, Binance Coin, XRP and Solana all trading up.
What is Bitcoin and how does it work?
Bitcoin is a digital coin invented in 2008 and known as a cryptocurrency which can be used in the exchange of goods online.
The coins are kept in a digital wallet app on a smartphone or digital device and can be sent and received in a few clicks.
Coins are global and an online version of cash but are different to the traditional currencies used in countries around the world.
It doesn't have a central bank or administrator.
Every transaction or trade is recorded in a public ledger called a blockchain to make it possible to trace the history of Bitcoins and prevent fraud.
Why had Bitcoin's share price soared and crashed?
Elon Musk, the world's richest person, posted on Twitter that he was a supporter of cryptocurrencies, leading to a surge in popularity of companies like Bitcoin.
Earlier this year he threw his support behind Dogecoin, which, in conjunction with social media speculation by Reddit users, saw its share soar 800%.
Then the business magnate, who founded American aerospace manufacturer and transporter SpaceX, put a rocket up Bitcoin.
Tesla's investment sparked a jump of 14% to a price of $46,950 (£34,032) per coin - a 300% increase in Bitcoin's stock value to this time last year.
A Tesla statement read at the time: "We expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt."
The move has been described by analysts as "potentially game changing" as cryptocurrencies move to a more mainstream position in the financial world – before Musk’s latest Tweet rocked the world of cryptocurrencies.
Is Bitcoin a good investment?
The appeal of Bitcoin is that its currency is global and isn't controlled by any government or banks, making it cheaper to make transactions.
It had recently seen a boost in popularity after Musk said he was a supporter of the cryptocurrency and even changed his Twitter bio to #bitcoin.
Musk's comments and actions have led to market movements of Bitcoin and Dogecoin in recent times due to his personal wealth and influence.
However, there are some concerns around turning 'real' money into cryptocurrencies, such as Bitcoin, largely based around security.
It is possible to lose a Bitcoin wallet or delete Bitcoins and lose them forever.
Andrew Bailey, governor of the Bank of England, has reiterated his scepticism about cryptocurrencies, telling MPs that Bitcoin had "no intrinsic value at all".
He said: “I’ve said a number of times, ‘only buy bitcoin if you’re prepared to lose all your money’. It doesn’t mean you will lose all your money, it doesn’t mean the value will go to nothing, but it has no intrinsic value. People may want it, they may want to collect it, but it doesn’t have any intrinsic value at all.”
How do I buy Bitcoin in the UK?
It can be a tricky field to navigate for the uninitiated but if you're confident in buying cryptocurrencies then there are numerous places to go.
Global cryptocurrency websites like Coinbase Pro, Crypto.com, CoinJar, Wirex, and Coinfloor are available with quick how-to guides to start trading.
In October 2020, Brits were banned from buying some cryptocurrencies after a rise in the number of people making bad investments and losing money.
The Financial Conduct Authority (FCA) warns people about the risk of investing in cryptocurrencies, referencing price volatility, product complexity, charges and fees, marketing materials and consumer protection.