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What is bitcoin? Bitcoin is a digital currency that can be transferred and used to make payments anonymously without fees. The virtual currency transactions are recorded by a ledger known as the blockchain which is run by so-called ’miners’. Bitcoin has been around for eight years. Secretive internet user, Satoshi Nakamoto, invented bitcoin but his true identity has never been revealed.

Why did bitcoin fall? Bitcoin crashed on Thursday, falling from $1,161 (£942) to $889 before it stabilising again at about $950. The 20 per cent drop could have been prompted by Beijing’s efforts to shore up the Chinese yuan, which rose on Thursday thanks to strong economic data. Supporters refer to bitcoin as a form of digital gold and it is seen as a way to avoid transaction fees, regulation and monetary policy. Nevertheless bitcoin is a volatile asset and has a history of unpredictability since its creation eight years ago.

www.coindesk.com The fall in bitcoin yesterday in UTC time

Getty Bitcoin has reached a record high, but what is it?

Why did bitcoin reach a record high? Bobby Lee, co-founder and CEO of Bitcoin exchange BTCC, said geopolitical events, such as foreign capital controls in China, had boosted the value of bitcoin. He also highlight the demonetisation efforts in India and Venezuela as well as money printing and high debt in other countries. “When the existing money system has problems, people come and maybe turn to bitcoin,” he told CNBC.

A stunning view of the Queen's coins Mon, March 27, 2017 Commemorative coins released by The Royal Mint depict Queen Elizabeth II's reign since 1953. Play slideshow PA 1 of 20 Queen Elizabeth II has become Britain's longest reigning monarch as of September 9th 2015