Any graph showing the value of the cryptocurrency bitcoin tends to resemble a rollercoaster track, as it has a history of rising and falling sharply due to various factors outside of anyone's control. There was a time when a single bitcoin was worth virtually nothing, but recent rising investor interest has caused its value to go through the roof.
Yesterday, it reached an all-time high of $5767.48 (£4,335.07) for a single bitcoin. A single bitcoin could now pay for a year's worth of small holidays or one absolute baller of a trip to Ibiza or Vegas.
Earlier this year, the value had been hovering around the $2,000-3,000 (£1,503-2,255) mark, however it appears that the sudden spike followed news that China could reverse its ban on cryptocurrencies. Gatecoin Chief Executive Aurelien Menant told CNBC: "Speculators are bullish on bitcoin's value with the anticipation of China's reintegration with global crypto markets."
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Credit: CoinMarketCap
But if you think that's impressive, the sky's the limit for bitcoin's value according to a high-level hedge fund manager. Former Fortress Investment Group manager Michael Novogratz also told CNBC that bitcoin could fetch $10,000 (£7,521) in the next six to 10 months: "I can hear the herd coming. [Bitcoin is] going to the be the largest bubble of our lifetimes. Blockchain will change the way we live. This is not going away."
That news would be devastating to the people who sold their bitcoins just after it was set up. The first person to actually pay for something with the digital currency was Laszlo Hanyecz from Jacksonville, Florida, who offered to hand over 10,000 bitcoins to whoever ordered him a couple of pizzas to his house.
Back then a single bitcoin was less than a cent. But can imagine how he's feeling now, knowing that he could have had an absolute fortune, only to give it away for a pizza. Surely that will go down as the most expensive pizza in the history of mankind.
Credit: PA
According to CoinMarketCap there are 16,620,550 bitcoins in circulation at the moment. By the year 2140, there will be 21 million bitcoins, which is the maximum amount that can ever be present.
While the cryptocurrency has been heralded for taking the power away from banks, it's also reportedly attracted criminals to use it because of its power of anonymity. Three years ago, the University of Kentucky reported "robust evidence that computer programming enthusiasts and illegal activity drive interest in bitcoin, and find limited or no support for political and investment motives."
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Sources: CNBC, CoinMarketCap,
Topics: Bitcoin, Money, Cryptocurrency