Despite bitcoin's stratospheric plunge, Ohio has become the first state to accept the cryptocurrency for tax payments. But with the freefall, will anyone realistically pay their taxes in bitcoin? Currency trading experts said Ohio's move is likely a “headline grabbing” use case but probably not something that will become a reality.

Bitcoin has lost 22 percent of its market value over the past week and 40 percent over the last month, largely driven by panicked investors wanting to cut their losses, according to analysts. Trading at around $20,000 this time last year, the digital currency is currently valued at $3,664.

With so much volatility in the market, Ohio said it would protect itself by using BitPay, which sets a fixed exchange rate in a 15-minute window. As part of the agreement, BitPay will accept any wild swings that happen during that time, ensuring its customer, the state of Ohio, receives its fair share of taxes.

“People are concerned that the bitcoin dream is over,” Raoul Pal, co-founder and CEO of Real Vision, told NBC News. “The reality is people don’t want to have losses. There were a lot of people who bought in and are starting to lose money.”

The cryptocurrency market is now worth about $130 billion, after an $800 billion high in January, according to CoinMarketCap. Bitcoin, still the largest of the cryptocurrencies, accounts for nearly $67 billion in the digital currency market.