Another reader, 77-year-old Ian Johnson from North Wales, said he had started to invest in Ethereum, another cryptocurrency, in September as a way to supplement his pension. He has spent about £400 following a tip from his adult sons and said he planned to drip-feed in more.
Ethereum or “Ether” has risen nearly fourfold in the past 12 months. Its price peaked this week at more than $600 but then fell to around $490 per coin on Thursday.
Experts have warned that hysteria has pushed the price of Bitcoin close to breaking point and have predicted an imminent “correction”.
Richard Smith of the Foundation for the Study of Cycles, an American think tank set up in the aftermath of the Great Depression, said: “A correction is a real possibility and data suggests we could be close to the top of the market.
“The run-up has been crazy, although it does feel more substantial than the last time, with larger investors and companies backing it. Anyone considering buying Bitcoin should either be prepared to hold it for at least three years or be happy to see their investment drop by as much as 50pc.”
Sharp rises and falls have characterised Bitcoin’s 12-year history. Its record high was in December 2017, when the price touched $20,000 before collapsing. Its value fell by around a quarter in a single day and plummeted by more than 80pc over the course of 2018.
But stock market volatility, record-low interest rates and recession fears have pushed savers to alternative assets and Bitcoin has once again drawn them in with its claimed status as a “digital gold” store of value.
Interest in digital currencies from governments, central banks and large financial institutions has also helped push up prices.