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Other fans point to the growth in novel cryptocurrencies. Because of bitcoins maturity, and its focus on finance, if you want to get some Ether, a few Filecoins or any other cryptocurrency, its usually easiest to purchase bitcoin with your conventional currency and then trade bitcoin for the cryptocurrency of your choice.

Then theres the bubble argument. There, people assert that the vast majority of the purchase price increase is due simply to individuals buying bitcoin in the expectation they can sell it later for a profit. A traditional speculative bubble, some individuals will create a great deal of money while some are going to lose everything. .

Few would argue that there isnt a lot of speculation in the cryptocurrency marketplace. There are commercials on the London underground, and all over Instagram and Facebook, encouraging viewers to invest in cryptocurrencies and, judging by the amount of money flowing in to the ecosystem, so a lot of people are taking up the offer. .

At some point, those people will get flighty and try to cash out their gains. If enough do at once, the price of bitcoin will require such a fall that it is going to prompt a run and well see the classic crash.

But the real question is not whether this will happen, but when and how big the crash is. Three times now, bitcoin has had boom-and-bust cycles that have seen vast amounts of value destroyed, but have still left the currency valued greater than it had been before the prior boom began.

After the crash which followed, one coin has been worth $120.) Its not only a smooth ride up, but that doesnt mean its a total bubble. .

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

In a normal, centralised, business, that wouldnt be a problem: just update the software and move on. However, a bitcoin update requires convincing every single miner to take the new software differently, the miners who take 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 had been the nightmare each developer tried to avoid. But recently, divisions among the community have come to be so fractious that numerous hard forks have occurred, all around the way to address this traffic slowdown.

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

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

It varies greatly. Some, such as JP Morgan Chase mind, Jamie Dimon, are really dismissive of the whole thing, arguing that the most properties of bitcoin that make it so appealing as a form of electronic gold are why its doomed to remain a niche prospect. For Dimon and co, the volatility of its exchange rate, absence of any economic oversight to control monetary policy and absence of assistance from major nation states mean bitcoin cant truly replace pounds and dollars and is therefore a failure. .

Few disagree with this conclusion, but a few bankers point to additional 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 significant banks substituted their normal book-keeping with one mutual, but still closed, database Might that help cut down on fraud and ensure a more level 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 only on the back of drug dealing and cybercrime Quite possibly: Both are large businesses, and neither shows any sign of going away. .

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

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Hes still a puzzle. The pseudonymous founder of bitcoin, Nakamoto appeared out of nowhere in 2008 when he published the white paper that try this out described how his planned digital currency would get the job done. While he had been busy in the online community around bitcoin for the first two or three years of the currencies life, he posted less and less, making his final ever post on 12 December 2010. .