Bitcoin surges to all-time high above $5,000

Bitcoin has again hit a new record-high valuation, tipping $5,200 (£3,900) despite experts continuing to express scepticism about the cryptocurrency's popularity.

Last month the chairman and chief executive of JPMorgan Chase (Swiss: JPM-USD.SW - news) , Jamie Dimon, described Bitcoin as a "fraud" and told his company's investors it was "worse than tulip bulbs".

However, Jeroen Blokland, an investor at Robeco, noted on Twitter (Frankfurt: A1W6XZ - news) than $1,000 invested in the digital cash back on 22 July 2010 would now be worth $100m.

Bitcoin has increased 750% this calendar year, but has continued to display the extraordinary volatility which has made many investors shy away.

The value of the cryptocurrency has recovered since September when a crackdown in China , prompted by fears of fraud connected to similar technologies, caused it to crash below $3,000.

Naeem Aslam, chief analyst at Think Markets, believes Bitcoin could continue to surge if large e-commerce players like Amazon begin to accept it.

Analysts have fuelled rumours that Amazon could announce a move to accept Bitcoin during its next investors' call, due this month.

Mr Aslam believes it could hit $7,000 by the end of the year, and suggested acceptance by outfits such as Amazon, eBay and China's Alibaba (Berlin: AHLA.BE - news) may help it get there.

The cryptocurrency is also being chased by North Korean hackers due to its suitability for dodging sanctions, as payments are processed in a distributed manner rather than through a central authority.