Bitcoin too small to threaten global economy, says Bank of England deputy

Jon Cunliffe says speculators need to 'do their homework' on bitcoin before investing

Bitcoin has climbed 10-fold so far in 2017 (Reuters)

Bitcoin isn’t big enough to pose a risk to the global economy, Bank of England deputy governor Jon Cunliffe said on Wednesday, as the cryptocurrency hit a record high of above $10,000 (£7,493) for the first time.

The virtual currency traded below $1,000 at the start of the year and has since climbed 10-fold, sparking concerns from sceptics that the rise of bitcoin is a bubble waiting to burst.

“I would just say investors kind of need to do their homework,” Mr Cunliffe told BBC Radio.

Digital currencies have largely been shunned by the City and Wall Street, but the prospect that bitcoin could soon become mainstream has fuelled speculation.

JPMorgan, spearheaded by bitcoin’s most staunch critic Jamie Dimon, is said to be considering helping clients trade contracts linked to the cryptocurrency.

Mr Dimon has in the past called people “stupid” for buying bitcoin and said he would fire any of his employees who were trading it.

The rise of bitcoin, first introduced in 2009, prompted China to crackdown on digital currencies in September. Anyone who put their money into the cryptocurrency in October will have seen a 100 per cent return on their investment.

Singer Bjork, known for her experimental music, is accepting bitcoin as well as other cryptocurrency such as litecoin and dash as payment for her latest album which went on sale on 24 November.