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Other fans point to this expansion in novel cryptocurrencies. Due to bitcoins maturity, and its particular focus on finance, if you want to get some Ether, a few Filecoins or any other cryptocurrency, its generally easiest to purchase bitcoin together with your conventional currency and then exchange bitcoin to your cryptocurrency of your choice.

Then theres no bubble argument. There, people assert that the vast majority of the purchase price rise is due simply to people buying bitcoin in the hope they can sell it later for a profit. A classic speculative bubble, some individuals will create a lot of money while some are going to lose everything. .

Few would argue that there isnt a good deal of speculation in the cryptocurrency marketplace. There are adverts on the London underground, and all over Instagram and Facebook, encouraging audiences to invest in cryptocurrencies and, judging from the amount of money flowing in to the ecosystem, a great deal of individuals are taking up the offer. .

At some point, those people will get flighty and attempt to cash out their gains. If enough do at once, the price of bitcoin will take this kind of tumble it is going to prompt a run and nicely see the classic crash.

But the real question is not if that will happen, but when and just how big the wreck is. Three days now, bitcoin has had boom-and-bust cycles which have seen vast amounts of worth destroyed, but have left the currency valued greater than it had been before the previous boom began.

Following the crash which followed, one coin was worth $120.) Its not only a smooth ride up, but that doesnt mean its a entire bubble. .

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Since the bitcoin network has grown, its reach problems. For dull, technical reasons, the network as it was initially designed fights to manage the amount of traffic that flows through these days, leaving huge delays in the amount of time that it takes for a transaction to be confirmed.

In a normal, centralised, business, which wouldnt be an issue: just update the applications and move on. But a bitcoin update requires convincing every single miner to take the new applications differently, the miners who carry on running the older version are effectively running an entirely different currency from those who have updated. .

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This is known as a challenging fork, and for its first six years of bitcoins life, it was the nightmare every programmer tried to prevent. But recently, divisions among the community have come to be so fractious that numerous hard forks have happened, all around how to deal with this traffic slowdown.

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With names like Bitcoin Classic, Bitcoin Unlimited, and Bitcoin Gold, each claims that it's the genuine heir to the original vision but using every branch, the playing field becomes more crowded.

Nothing is destroyed with every fork: if you had 100 bitcoin before Bitcoin Cash split , following the split you had 100 bitcoin and you had 100 Bitcoin Cash. However, with every fork, the playing field becomes more crowded, more confusing for newcomers, and the overall reputation for (relative) stability becomes eroded.

It varies considerably. Some, like JP Morgan Chase head, Jamie Dimon, are extremely dismissive of the whole thing, arguing that the most properties of bitcoin that make it so appealing as a kind of digital gold are why its doomed to remain a niche prospect. For Dimon and co, the volatility of its exchange rate, lack of any economic oversight to control monetary policy and absence of assistance in major nation states mean bitcoin cant truly replace pounds and dollars and is consequently a failure. .

Few disagree with that conclusion, but some bankers point to other advantages of the technology. The blockchain concept, they say, could be helpful in conventional banking too. Forget bitcoin itself and focus instead on the value of a dispersed ledger. What if all the major banks substituted with that site their normal book-keeping with one shared, but still shut, database Might that help cut down on fraud and ensure a higher playing field.

And then, obviously, there are the advantages of bitcoin that conventional banking cant expect to compete with - and doesnt want to. Can a shadow currency exist purely on the back of drug dealing and cybercrime Quite possibly: Both are big businesses, and neither shows any sign of going away. .

Craig Wright, who claimed to become Satoshi Nakamoto, the evasive bitcoin inventor. Photograph: Mark Harrison/PA

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Hes still a mystery. The pseudonymous founder of bitcoin, Nakamoto appeared out of nowhere in 2008 when he published the white paper that clarified his proposed digital currency would get the job done. While he was busy in the online community around bitcoin for the first two or three years of the currencies lifetime, he published less and less, making his last ever post on 12 December 2010. .