Bitcoin crashes CBOE after making its debut on the trading site
People have expressed their frustration at the news on social media.
One user tweeted:”Quite a pathetic launch of future on CBOE, it seems that the website crashed.”
Another added: “CBOE site down eight minutes after Bitcoin launch.”
Bitcoin has crashed the CBOE stock exchange website in less than ten minutes
In 2017 alone, Bitcoin’s value has increased by more than 1,000 per cent.
In the opening minutes of trading on CBOE Bitcoin increased in value by $1,170 (£873.41) as the price of a single bitcoin spiked by 10 per cent.
The January contract opened at $15,460 in New York on Sunday evening, before leaping to a high of $17,170 during Asian hours.
The futures are cash-settled contracts based on the auction price of bitcoin in US dollars on the Gemini Exchange, which is owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss.
Prior to the launch at 11pm GMT critics had warned prospective buyers about the extreme volatility of the unregulated currency alongside issues surrounding hacking and money laundering that could cause problems for mainstream stock exchanges.
Craig Pirrong, a finance professor at the University of Houston, wrote in a blog last week: “The Bitcoin cash markets are immature, and hardly seem the epitome of robustness.”
In 2014 Mt. Got, the largest Bitcoin exchange, collapsed after hackers stole more than $470million (£350million).
In a statement urging caution the central bank said: “In the wake of a significant spurt in the valuation of many virtual currencies and rapid growth in Initial Coin Offerings, the Reserve Bank of India reiterates the concerns.”
They went on to say Bitcoin has the “economic, financial, operational, legal, customer protection and security related risks.”
The bank has issued three warnings since 2013 about the risks of the cyber money.
Bitcoin: The ‘volatile’ currency that jumped 1000% this year
The rapid increase in the value of Bitcoin has led to fears it is a bubble that may soon crash.
However, the opinions on the impact of such a crash vary widely.
An economist at Deutsche Bank has warned that a crash in the price of the cryptocurrency could destabilise the global markets.
Chief International Economist Torsten Slok said: “We do worry a bit that it could become more systemic, in particular, if the current trends continue into 2018.”
Meanwhile, Andrew Kenningham, an economist at Capital Economics, has argued that the risk to the global markets from a Bitcoin crash is relatively small.
He said: “Bitcoin’s market capitalisation is currently around $240 billion, which is much smaller, say, than the value of gold outstanding.
“If the price of bitcoin fell to zero today, the paper losses would be equivalent to a 0.6 percent fall in U.S. equity prices. As most investors have bought bitcoin at much lower prices, the relevant losses would arguably be smaller.”