The value of the Australian dollar has fallen to a new low after it was plunged to a record low against the US dollar in August.
In a blow to the world’s biggest economy, the Australian currency has been worth about 40% less against the dollar since the beginning of the year.
The country’s central bank last week announced a “quantitative easing” programme, which it said would ease some of the pressure on the economy.
However, bitcoin has been a big factor in Australia’s economy, with the price of a bitcoin in August rising to $2,929, the highest price in more than three years.
“There is still a lot of pent up demand for bitcoin in Australia,” said Nick Coles, chief executive of digital currency company Blockchain.
“The price has risen quite a bit and people are still buying bitcoins.”
However, Coles said he expected the dollar to continue to rise in the months ahead.
“I’m not saying that [bitcoin] is going to come back,” he said.
“But I’m sure the price will continue to climb.”
However the decline has also hit the Australian mining industry, which has been the biggest driver of the economy, and has also suffered from the low price of bitcoin.
Mining companies have been facing a steady fall in mining profits over the last year, and the latest data suggests that they are still on course to lose about half of their revenue.
In the last 12 months, mining companies have seen their profits fall by more than $6bn, according to the Australian Mining Association.
“We are definitely going to be seeing the Australian industry suffer from this,” said Andrew White, director of mining research at investment bank Commonwealth Asset Management.
“At the moment, it’s very difficult for people to make any money.”
But despite the difficulties facing mining companies, Colés said he believed the currency would rise again in the future.
“It’s a very risky asset,” he told Al Jazeera.
“And we’ll see where that goes.
We’ll see what happens.”
Bitcoin prices have also been falling in other markets around the world, with China and the European Union also seeing their prices fall.
“China is definitely going into a deflationary phase,” Coles told Aljazeera.
“They’re seeing the Chinese economy going into its biggest deflationary period in over 100 years.”
The drop in the value of bitcoin is having a big impact on the Australian economy, as it has also had an impact on other major markets, including Australia’s largest city Melbourne.
“This is the second consecutive month we’ve seen prices fall,” said Coles.
“So we’re definitely seeing a slowdown in the Australian retail economy.”
But for Coles and other bitcoin enthusiasts, the most significant impact of the drop in value is the reduction in the number of people trading in bitcoins.
“Bitcoin is still really a very safe investment and the market has been very supportive of it,” he explained.
“People want to see it move in a more positive direction.”
However for those who have not yet invested in bitcoins, there are still plenty of ways to invest in the cryptocurrency.
For example, Cols said there are now over 100 bitcoin exchanges in Australia, and many are already accepting deposits.
He added that the Bitcoin Investment Trust has already raised $250 million in funding from investors such as Microsoft co-founder Paul Allen and Warren Buffett.
“That gives us a lot more money to be able to invest,” Cols added.
“Now we’re in a position where we have a huge amount of money in the bitcoin market and we have an opportunity to make a huge impact on how it is used in the real world.”