The cryptocurrency broke another record on Sunday and rocketed to $11,773 (£8,736).
It capped a 30 per cent surge since last Thursday when the currency dropped out at $9,021 (£6,696) after plunging more than 20 per cent from last weekend’s high.
At one point on Sunday, bitcoin leapt more than $500 (£371) in an hour before settling at $11,005 (£8,171) later that afternoon after a slight drop.
Bitcoin cash, its offshoot, also surged on Sunday, peaking at $1,606 (£1,192) – which was just off its all-time high of $1,621 (£1,203).
The cryptocurrency broke another record on Sunday and rocketed to $11,773
According to CoinMarketCap.com, Bitcoin’s market cap as of Sunday afternoon stood at $186.8 billion and its price is up more than 1,000 per cent this year.
But, the cybercurrency is controversial and many experts have denounced it.
Last week the Nobel-winning economist Joseph Stiglitz said bitcoin is “smoke and mirrors” and “ought to be outlawed”.
Economic commentator Mark Hulbert predicts there is a greater than 80 per cent chance that bitcoin will soon crash.
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Despite numerous financial professionals claiming the cryptocurrency would not survive certain challenges, the digital tender has so far proven them all wrong.
However, there are still many other challenges that could crash the digital currency.
One major issue with bitcoin is the amount of forks its has experienced due to disagreements between developers on how to upgrade the currency.
Bitcoin forks are splits of the original digital currency – with the most recent being the creation of bitcoin cash.
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Ether, the second-largest digital currency, has witnessed massive gains since bitcoin began to fork. But these gains are marginal in comparison to its rival bitcoin.
As bitcoin has been used to purchase illegal materials before, regulators around the world have kept an eye on the currency, even though they have no real control over it.
Known as Geek’s Gold, the online transactions are anonymous and not traceable.
Drug dealing, cyberfraud, prostitution, gun-running and other major crime profits are being ploughed into the internet currencies.
At one point on Sunday, bitcoin leapt more than $500 in an hour
Drug pedlars are using high street bitcoin ATMs to deposit cash from deals, and there are reportedly 77 such ATMs in Britain.
Gang members are not only hiding money from the police, they are also making fortunes from the rise in the value of virtual currencies.
Detective Chief Superintendent Mick Gallagher, head of Scotland Yard’s Serious and Organised Crime Command, said gangs have turned to cryptocurrencies in the last 18 months.
Mr Gallagher said: “At the moment, it feels like there is significant growth.”
Experts warn about bitcoin and say it could crash
There is no regulation although leading internet currency firms and online exchanges would prefer it to be regulated and they cooperate with police.
Mark Haefele, UBS Group AG Chief Investment Officer, told Bloomberg that it would not be committing funds to bitcoin.
He said: “All it would take would be one terrorist incident in the US funded by bitcoin for the US regulator to much more seriously step in and take action.”
Goldman Sachs has also made it clear they will not be taking on the cryptocurrency.