Bitcoin could be an even bigger bubble than tulip mania, the first recorded economic bubble, economist and author Jim Rickards has warned. 

Speaking to Business Insider, he said: “Personally, I’m very sceptical of bitcoin, I know where the price action is. It’s you know, going up about 10 percent a day at this point. 

“Although bitcoin could go up to $20,000, it can go to $30,000. 

“It’s on its way to zero – somewhere between zero and $200.”

The economist also warned that the cryptocurrency is being used by criminals. 

He said: “It’s a utility token for criminals, terrorists, money launderers, tax evaders – they’ll always find some use for it. 

“So it might not go all the way to zero.”

Mr Richards pointed out bitcoin is “clearly” a bubble and went as far as to say it could be the biggest bubble ever. 

He said: “It’s clearly a bubble – it looks like the second biggest bubble in history after tulip mania. 

“Although, at the rate it’s going it will pass tulip mania, you know, in a matter of days.”

Tulip mania was a period in 17th Century Holland where contract prices for some bulbs of the new and fashionable tulip reached extraordinarily high levels and then dramatically collapsed. It is generally considered the first recorded speculative bubble. 

Mr Richards continued: “Bigger than the south sea bubble, bigger than the Mississippi bubble, New York’s - the Dow Jones in 1929, the Nikkei in 1989 - name your bubble, it’s bigger than all of them. 

“So I don’t own any, I don’t recommend it to clients. But, you know, I’m a free market guy, if people want to buy it, you know, knock yourself out.”

According to CoinDesk, bitcoin was up 8.79 percent at $16,497.32 at 18:35 in London.