Bitcoin bubble warning

THE VALUE of online cryptocurrency Bitcoin has taken a massive dive over the Christmas period, but on Boxing Day revived for some time.

The electronic currency was trading at the $US14,871.30 mark yesterday afternoon, according to tracking site CoinDesk.

That’s up from $12,148.92 on December 22, which itself was almost 40 per cent below a high of $19,597.75 reached on December 17.

The currency has jumped from less than $1000 a year ago and experts are warning of a potential bubble.

Still, things might get crazier: many people have heard of bitcoin but very few own it.

“Bubbles burst when the last buyers are in,” said Brett Ewing, chief market strategist for First Franklin. “Who are the last buyers? The general public, unfortunately.”

Mr Ewing said 40 per cent of bitcoin belongs to just 1000 people.