Radio hosts Chris Evans and Vassos Alexander talk about crypto currency
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According to CoinDesk, Ethereum was priced at $2,388.08 (£1,712.25) on Thursday afternoon – a drop of -2.61 percent in 24 hours. Ethereum also had a market cap of $277.78 billion, or £199.17 billion. As of 1.51pm on Thursday (GMT) Ethereum had plunged from $2,425.81 the hour prior to $2,390.84.
Ethereum’s drop over the last hour is perhaps linked to a tweet from Tesla CEO Elon Musk on Thursday afternoon about rival cryptocurrency, bitcoin.
Elon Musk responded to a tweet from Bitcoin Magazine about an interview with Kraken CEO Jesse Powell, which stated: “Kraken CEO @jespow: “Bitcoin is ‘greener’ than critics say. I think Elon has some more studying to do.”
Mr Musk replied to the tweet: “Based on what data?”
The tweet from Mr Musk has drawn further attention to the criticisms levelled at bitcoin in recent months about its eco credentials.
Why is Ethereum price falling? (Image: GETTY)
Why is Ethereum price falling? Price of Ethereum over the last day (Image: COINDESK)
Last month, Mr Musk tweeted that Tesla would no longer be accepting bitcoin as payment for its vehicles.
In a statement on Twitter, Mr Musk said: “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
He added: “Cryptocurrency is a good idea… but this cannot come at great cost to the environment.”
Mr Musk’s announcement prompted a drop in cryptocurrency prices across the board.
Why is Ethereum price falling? Ethereum is considered to be one of the market-leading cryptocurrencies (Image: GETTY)
Why is Ethereum price falling? Elon Musk has previously tweeted about his company SpaceX putting a ‘literal Dogecoin on the literal moon’ (Image: GETTY)
Mr Musk has previously tweeted about his company SpaceX putting a “literal Dogecoin on the literal moon”.
Cryptocurrency has boomed in recent months, but the market is currently under increased investigation across the world.
An estimated 2.3 million adults hold cryptocurrencies, up from 1.9 million last year, according to the City regulator in the UK.
Cryptoassets are largely unregulated and the Financial Conduct Authority (FCA) said most consumers recognise that crypto investments are not protected.
However, according to FCA research, 12 percent of users believe otherwise and the FCA is warning people of the risks involved with investing in cryptocurrencies.
Sheldon Mills, FCA’s executive director, consumers and competition, said: “The research highlights increased interest in cryptoassets among UK customers.
“The market has continued to grow, and some investors have benefited as prices have risen.
“However it is important for customers to understand that, because these products are largely unregulated, if something goes wrong they are unlikely to have access to the FSCS (Financial Services Compensation Scheme) or the Financial Ombudsman Service.
“If consumers invest in these types of products, they should be prepared to lose all their money.”