What is bitcoin, how does it work and what affects its price?

Few technologies have the ability to stir passionate online debate and baffle the vast majority of the population as bitcoin. The virtual currency rocketed in value last year before crashing at the start of 2018.

But bitcoin appears here to stay, at least for the time being. The price has remained steady in recent weeks, although it has yet to reach close to the high points of last year. Although it remains well below its peak of $20,000, it has remained around $7,500 (£5,650) over recent months.

There have been spikes along the way, possibly caused by mass computer trading or short sellers jumping ship and encouraging buyers to flood back in.

It all leaves investors with a slew of questions....

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