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Bitcoin Dips to $500 After China Blocks New Deposits

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China’s clampdown on Bitcoin continues, and the virtual currency’s prices keep plunging. As of early morning on Wednesday, the price of Bitcoin went down to around $500 across major exchanges, its lowest in nearly a month.

Two weeks ago, China’s central bank said Bitcoin was not a currency and thus prohibited local financial institutions from processing bitcoin transaction. Now, the central bank has banned third-party payment companies from dealing in bitcoins, as reported by multiple news outlets.

As a result of these regulations, which put into question the viability of Bitcoin as a currency in China, the global price of Bitcoin has dipped to less than $500, after it hit $1,000 just three weeks ago. Read more…

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