Bitcoin price continued to drop after the Christmas holiday’s fiasco when virtual wallet holders saw the cryptocurrency declining for four consecutive days.
And the bitcoin craze could be facing further falls after Ripple Labs CEO Chris Larsen announced plans to work alongside regulators to create a safer cryptocurrency trading system.
The Ripple co-founder said: “Law enforcement and regulators are right to be concerned any new technology but we worked with law enforcement.
“We think that regulators – if you can express the potential of this to help business and commerce and, at the same time, show that there are actually more transparent systems for catching the bad guys and eliminating bad things that could happen to financial systems – will see the win-win case for this cryptocurrency.”
Cryptocurrency analysts have warned criminals could be hacking into bitcoin systems due to its unexpected value increase – with North Korea suspected to be using the cryptocurrency to fuel its nuclear development programme.
Ripple has attracted tens of millions of dollars worth of investment leading to it being dubbed “the bitcoin that banks like”.
The company uses blockchain technology, powered by its own cryptocurrency, to send money across the world in real time settlements.
Speaking to Bloomberg, Mr Larsen continued: “Bitcoin is, in a sort of way, a way to store value. Ripple is a completely different idea.
“We are using the same breakthrough technology but we are using it to build a currency agnostic value-exchange.
“This new technology, that really is a second generation bitcoin, enables value to be exchanged in the same way information is currently exchanged. And that’s a big deal.”
But bitcoin expert Spencer Bogart said he is confident the cryptocurrency will “evolve” and “mature” to eventually become a deep market for investors.
He said: “Institutional investors that want to play in this market, even if they do, they are going to wait a little bit and either dip their toes in the water or just wait on the sidelines until they see the products themselves function.”
Bitcoin price has been stable since the start of the new year. According to CoinDesk at 5:57 pm GMT, on January 4, the cryptocurrency is valued at $14,699.59.
This article was curated from Google News. You can read the original article here.