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.
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.
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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