Bitcoin store in Hong Kong opens in 2014 (Image: GETTY)
The primary concern for investors is whether Bitcoin is actually worth the risk of adding to their portfolios.
As seen this month, with the risk of highs and lows so rampant, some investors have claimed to be put off the currency, including Gerald Moser - chief market strategist at Barclays Private Bank - who has continued to argue against investment in Bitcoin.
Speaking after Bitcoin s peak this year, he concluded that it was nigh on impossible to forecast its price, making it almost uninvestable from a portfolio perspective .
According to Financial News, Mr Moser added: With spikes in volatility that are multiples of that typically experienced by risk assets such as equities or oil, many would probably throw the cryptocurrency out of any portfolio in a typical mean-variance optimisation.”
| UPDATED: 11:57, Fri, Jan 22, 2021
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The currency sparked a major resurgence after its market value reached an unprecedented high of $41,000 (£30,000) on January 7, before enduring its worst decline in 10 months a matter of days later. Economists and experts have warned that due to the volatile nature of the currency s value, investors should be cautious when opting to finance Bitcoin moves. Yet, others - including value investor Bill Miller - claim that the currency will only get stronger, as the price of Bitcoin rises.