The stunning fall of Bitcoin also pushed its rivals into the red in another blow to the cryptocurrency market.
Bitcoin’s stunning fall from grace has also pushed its competitors into the red in another blow to the cryptocurrency.
Last week, an estimated US$400 billion ($A543 billion) disappeared from the cryptocurrency market after Bitcoin crashed more than 10 percent in one day.
The volatile cryptocurrency fell from $50,257 (AU$68,211) to $43,351 (AU$58,838).
It has stayed below the critical US$50,000 (AU$68,000) mark since then.
At the time of writing, bitcoin has gained quite a bit, trading at $45,055.31 (AU$61,151.32).
The massive drop in prices came when El Salvador became the first country to introduce Bitcoin as legal tender.
Although the country’s drastic move initially boosted the market, it soon sent Bitcoin into a slump after the country was forced to pause digital wallets due to a glitch.
Like dominoes, other cryptocurrencies are starting to crash.
Ethereum, cardano, and binance have posted steeper declines than their bitcoin peers.
The three cryptocurrencies fell between 13 percent and 18 percent last week.
At the time of writing, Ethereum is trading at $3,288.95 ($4463.93), down from an all-time high of $4,196.63 ($5,695.88) in May, according to cryptocurrency aggregator CoinMarketCap.
One Cardano coin can now be bought for $2.42 ($A3.28), down from an all-time high of $2.58 ($A3.50) late last month.
As for binance, the coin is now worth $399.46 (AU$A542.17) despite an all-time high in May of $690.90 (AU$937.72).
In all, $400 billion ($A543 billion) has been cleared from the charts, with the world’s cryptocurrency hitting rock bottom this year from $1.9 trillion (A$2.58 trillion) on Tuesday, according to Forbes.
However, despite the shaky start of El Salvador’s bid as a crypto country, the country’s leader decided to make the most of the currency crash.
El Salvador’s President Neb Bukele announced that the country benefited from the “decline” by buying an additional 150 bitcoins.
Bukele’s holdings have now risen to 550 coins – a total value of about US$25 million (AU$34 million).
First country to submit legal tender for Bitcoin
In June, El Salvador voted to become the first country in the world to adopt bitcoin as a legal tender.
With 62 out of 84 possible votes, politicians voted in favor of the move to create a law to adopt bitcoin for everyday use.
The bill would allow the popular volatile digital currency to be used in many aspects of daily life, from real estate purchases to tax contributions.
The law went into effect last Tuesday, September 7.
To encourage citizens to jump in the cart, the government of El Salvador has distributed $30 in free bitcoins to anyone who subscribes to its national digital wallet, known as Chivu.
Foreigners who invest three bitcoins in the country — currently up to $150,000 (AUD$200,000) — will get residency, according to fast company.
Bitcoin Investors Can Also Avoid Paying Taxes, According to telegraph coin.
However, not everyone is impressed with this move.
The International Monetary Fund (IMF) is concerned about the volatility of the coin and has warned that it could destabilize El Salvador’s economy.
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