However, bitcoin is notoriously volatile and a multitude of financial experts have advised people not to get involved, calling it a bubble that could burst at any moment. There are now fears that it already has.
Recent events have demonstrated just how quickly the situation can change for investors - with cryptocurrency exchanges reacting adversely to exterior threats like regulation, cyber-crime and advertising bans.
After hitting a record high of more than $19,850 (£14,214) in mid-December, bitcoin’s value tumbled to $12,000 (£8,630) within days.
It then surged again, before plummeting in mid-January amid reports that trading was about to be banned in several countries around the world. It then stabilised, before plunging at the start of February and enduring a rocky start to March.
Its price is expected to continue to fluctuate unpredictably, and this live blog will be regularly updated with the latest news and significant changes.
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