Bitcoin fell Monday after another government said the cryptocurrency “poses a danger to the security and stability of financial markets and a threat to national security.”
China’s National Development and Reform Commission (NDRC) on Sunday “severely” criticized bitcoin mining in the country, arguing the growth of cryptocurrency mining can impair national security and “insult social norms” by creating “physical mines of harmful materials” at the expense of resources.
The NDRC called for the industries to consolidate into businesses with a proven track record. It also encouraged the establishment of “centralized virtual currency storage facilities,” according to a statement posted on the NDRC’s website, as cited by Tech.eu.
In August, China shut down domestic cryptocurrency exchanges, hitting bitcoin prices hard.
Bitcoin fell to about $11,800 in morning trading, according to Bloomberg.
Bitcoin grew in value from $700 at the start of 2015 to nearly $20,000 at the start of December of that year. Bitcoin declined to less than $5,000 by the start of this year, then turned around and gained more than 70 percent during the third quarter of this year.
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