If you’re still pondering whether or not to invest in cryptocurrency, this should help you make up your mind.
Almost every single cryptocurrency in the world is tanking right now. Bitcoin lost over 11% in the 24-hours before time of writing, Ethereum and Litecoin had plunged almost 20%, and Ripple nosedived 14%. Some, like EOS and Qtum, had lost almost 40%. Among the larger coins, only Tether—the 19th largest cryptocurrency by market cap—was holding out with a 3.2% gain.
Here’s how the top end of the cryptocurrency market looked as of 11:31 PM ET on Sept. 4:
So what’s behind the crash?
On Monday morning, China said cryptocurrencies had “seriously disrupted the economic and financial order” and outlawed Initial Coin Offerings (ICOs)—also known as token sales—the means by which funds are raised for a new cryptocurrency venture.
China’s ban hit the market especially hard in the immediate wake of the U.S. Securities and Exchange Commission (SEC) warning against the legality of some ICOs, Tech Crunch reports.
The across-the-board tanking of cryptocurrencies also coincides with the latest provocative nuclear test by North Korea, suggesting traders are not betting on them as safe-haven assets in times of global turmoil.
Turns out it might be time to revert back to the old refrain: buy gold.