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.
:: The Independent’s bitcoin group is the best place to follow the latest discussions and developments in cryptocurrency. Join for the latest on how people are making money – and how they’re losing it.
Live Updates
7 mins ago
Bitcoin's value remains much as it was this morning right now, holding at $10,575 (£7,609), according to Coinbase. Its drop of 3.45 per cent compared to yesterday afternoon is not inconsiderable, however, and that high of $11,629 (£8,371) on Monday evening suddenly feels like a long time ago.
3 hours ago
The surge in interest in bitcoin and its peak growth over recent months has been understandable but it has also led many to overlook the impressive performance of the coin's top five rivals. We examine their progress here.
3 hours ago
Bitcoin, etheurm, ripple, bitcoin cash, litecoin... in fact all but two of the top 50 cryptocurrencies have declined in value over last 24 hours, according to CoinMarketCap.
8 hours ago
The biggest cryptocurrency of the moment continues the slight decline it entered into yesterday, starting out on Wednesday morning valued at $10,500 (£7,553), according to Coinbase. That's a drop in worth of 6.8 per cent in 24 hours.
a day ago
Bitcoin has tumbled in value somewhat this afternoon after a bright start and is down almost 5 per cent on this time yesterday to $10,934 (£7,870), according to Coinbase.
a day ago
Bitcoin's progress over the last month, according to data from Coinbase.
a day ago
This morning bitcoin is valued at $11,275 (£8,150), down from the recent high it achieved yesterday evening of $11,640 (£8,414), according to Coinbase. While that's down 2.06 per cent on this time yesterday, the cryptocurrency's value has risen almost 7 per cent in a week and by almost 24 per cent in the last month.
2 days ago
Hollywood star Ryan Gosling has been used to whip up interest in a cryptocurrency scam, his likeness featured as the picture for one "Kevin Belanger", a graphic designer, on the webpage of Chinese venture Miroskii, shortly planning an ICO. A timely reminder of how cautious digital currency speculators have to be when investing online.
Gosling's image as it appears on Miroskii's website
2 days ago
Bitcoin starts the week up to $11,425 (£8,264), showing steady if unremarkable growth from the $10,970 (£7,955) it was valued at on Friday afternoon, according to Coinbase's data. Looking at it week-on-week though, that's a rise of 11.43 per cent and a huge increase of 27.92 per cent on this time last month.
5 days ago
In other cryptocoin news, Uber’s co-founder Garrett Camp is the latest to enter the fray. Camp is launching his own digital currency in the hope of challenging bitcoin, ethereum and litecoin, known as "eco".
5 days ago
Bitcoin's growth appears to have fallen off somewhat this afternoon, the digital currency now valued at $10,970 (£7,955) after peaking at $11,031 (£7,999) at 1pm, according to Coinbase. Its value remains generally steady though - and it's still posted 2.14 per cent growth on this time yesterday.
5 days ago
This morning finds bitcoin continuing the climb in value begun yesterday. It's now worth $11,079 (£8,048), up 5.57 per cent in the last 24 hours, according to Coinbase. That's almost a 10 per cent rise in price on this time last week.
6 days ago
Bitcoin has gradually climbed in value over the course of this morning to £10,775 (£7,828), up 2.86 per cent on the same time yesterday, according to Coinbase.
6 days ago
Bitcoin begins the day at $10,500 (£7,630), down 1.97 per cent on this time yesterday, according to Coinbase. The cryptocurrency's value appears to be holding relatively steady at present.
7 days ago
Coinciding with the rise to prominence of bitcoin and its mid-December value peak, Symantec Intelligence Threat has reported seeing a 1,200 per cent rise in incidents of "cryptojacking" in the UK, in which hackers take over other people's personal computers for the purpose of secret cryptocurrency mining. Previously requiring the installation of malware, this can now be carried out in-browser.
7 days ago
This afternoon bitcoin is down to $10,496 (£7,599) following that big rise to $11,030 (£7,933) early this morning, according to Coinbase. That's a small fall of 1.64 per cent compared to the same time yesterday.
7 days ago
Microsoft co-founder Bill Gates has argued that cryptocurrencies "cause death in a fairly direct way" by facilitating the unregulated sale of strong medications online. The influential tech billionaire also said that the anonymous nature of virtual currency transactions were facilitating criminal activity such as money laundering and tax evasion during a Reddit AMA.
7 days ago
Another high-profile name connected to bitcoin is Apple's co-founder Steve Wozniak, who yesterday revealed he'd been caught out by a cryptocurrency scam. The consumer electronics legend had seven coins taken from him (now worth $70,000) by a buyer who used a stolen credit card and simply cancelled the outgoing payment, underlining how careful you have to be when trading online.
7 days ago
And, in music news, 50 Cent has confessed he isn't actually a bitcoin millionaire after all. Reports that he had been paid 700 bitcoins for his work on the 2014 album Animal Ambition were sadly untrue.
7 days ago
Elsewhere in the digital currency realm, The Independent's Will Gore discusses the bizarre new phenomenon of cryptocurrency strip clubs.
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