Bitcoin Continues to Plunge After Trading Resumes

Pile Of Coins

The value of Bitcoin continued to plunge as trading resumed at Mt Gox, the world's largest virtual currency exchange.

The currency fell to $75 before stablizing at around $102 in early U.S. hours.

Bitcoin was valued at around $120 when trading was halted for about 12 hours, following a substantial drop in Thursday's trade.

Dismissed by some as a Ponzi scheme and hailed by others as the future of money, the coin plunged in price to $130 from a record high of $260 on Wednesday.

Mt. Gox said in a press release, "The rather astonishing amount of new accounts opened in the last few days added to the existing one plus the number of trade made a huge impact on the overall system that started to lag. As expected in such situation people started to panic, started to sell Bitcoin in mass (Panic Sale) resulting in an increase of trade that ultimately froze the trade engine!" (sic)

(Read More: Bitcoin Bounces Back After Crashing Nearly 60% )

Bitcoin is a digital currency that is bought and sold on a peer-to-peer network independent of any central control. Users can send money directly from their computers to others on the other side of the world; coins can be used to buy real goods, swapped for cash on exchanges or used for speculation.

The currency has gained prominence amid the euro zone sovereign debt crisis as more people start to question the safety of keeping their cash in a bank. Bitcoins shot up in value in March when investors got alarmed at Cyprus' plans to impose losses on bank deposits.

-Reuters contributed to this report.

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