Bitcoin sinks below $8,000 after Finance Minister of India Arun Jaitley imposes a ban

The online currency has so far seen a turbulent 2018, with its value continuing to all after it reached an all time high of nearly $20,000 (£14,000) in December last year.

Since the turn of the year Bitcoin’s value has decreased by more than 50 per cent.

Throughout 2017 Bitcoin saw its price rise by more than 1,500 per cent from the beginning of the year after the value of a single Bitcoin has soared from $954 (£668) in January.

The decline over the past month comes after experts warned that the digital currency was in a bubble that would eventually crash.

Predicting a crash in the price of the commodity, last year cryptocurrency investor Oliver Isaacs called bitcoin the “biggest bubble of our lifetime”.

He added: “Due to the lack of Bitcoin regulation investing in bitcoin is a risky business and no one knows if or when bitcoin will crash.”

Despite the trend in the collapse of the value of the original online currency, there are some who believe the current drop is due to confusion surrounding the Indian Government’s stance on cryptocurrencies.

Earlier this week the Finance Minister Arun Jaitley spooked investors when he announced plans to “eliminate” the use of digital currencies for payment purposes.He said: “The Government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.

“The Government will explore the use of blockchain technology proactively for ushering in the digital economy.”

India is not the only country to have announced its intentions to crackdown on the use of the digital money.

In January South Korea introduced a raft of measures aimed at regulating Bitcoin and similar currencies such as Ripple and Ethereal.A ban on anonymous trading was implemented by the Asian power in a bid to crack down on all possible criminal activities the secret nature of trading Bitcoin allowed.Bitcoin and blockchain expert Simon Taylor said: “I think it’s evidence of a government trying to get its hand around a subject which was seen as ungovernable.

Originally appeared at Express