Investing.com – Bitcoin fell on Tuesday but remained well supported as data showed fund outflows from the crypto-market was limited despite growing regulatory efforts to curb bitcoin-related actively.
The total cryptocurrency market cap at roughly $419 billion, at the time of writing, remained well above the roughly $320 billion seen at the depths of the tumble last week, according to data from coinmarketcap.com
Iceland, home to a several bitcoin miners, said it would consider a bitcoin mining tax. Bitcoin miners favour Iceland as the ideal location to carry out mining activity as energy is both cheap and abundant.
For the uninitiated, Bitcoin miners are users who help maintain the system by validating transactions stored in “blocks” on the network.
Using energy-intensive computer hardware, miners validate blocks by solving a complex “puzzle” – the more powerful the computer the faster its ability to solve the puzzle. Every time a "puzzle" is solved, a reward of roughly 12.5 bitcoins – roughly at current prices –is distributed to the "puzzle solver" or miner.
Bitcoin fell 1.75% to $8,580, while Ethereum, the second largest cryptocurrency by market cap, lost 2.42% to $838.56
Ripple XRP, meanwhile, fell 3.81% to $1.986