Bitcoin is taking a severe hit on the markets, as it was trading down 12.9%, at $2,161 a coin. This represents a 40% drop from a high of $2,999.97 reached on Monday. That makes this week the worst weekly decline for the cryptocurrency is two years. In layman’s terms, this means that Bitcoin has lost $10 billion in value in the space of a week.
Morgan Stanley warned about the rapid growth of the currency as a potential sign of its volatility. “It is not clear why cryptocurrencies are appreciating so rapidly (apart from the appreciation itself drawing in more speculation against a potentially inefficient ability to sell),” the firm said.
Bitcoin is a controversial form of currency transaction. Many critics believe that the currency has two actual uses, money laundering and online gambling.
Companies who have previously used bitcoins have begun to separate themselves from the cryptocurrency due to technical problems. Needed technical upgrades to allow the system operate at full capacity have not been installed, causing problems in its distribution.