Commenting on the 20 percent drop in Bitcoin value, Yang Li, chief growth officer for Ziglu the personal money app, said: "We have been in such a phenomenal bull run with all-time high after all-time high and people are pulling back a bit to reap some of their profits, selling some of their Bitcoin, which drove the price down. As a long term investment I think this price dip is a very positive sign because it is maturing as an asset class. If you were buying gold or FTSE 100 stock, for example, you would sell some of your upside to cover your original investment.

“Covid-19 has had a big effect on manufacturing the hardware needed for those installing and maintaining bitcoin mining rigs. Miners had been entering the market seeing that it’s very profitable to mine Bitcoin but all of a sudden there are supply chain issues so there is apprehension about whether it’s the right time to invest in mining. There is pull-back, people are waiting to see where this all-time high settles before they commit further.

“One reason the value has not bounced back immediately is that retail investors are apprehensive after regulators across the world, including the Financial Conduct Authority, issued a warning about the volatility and unregulated nature of cryptocurrencies. So we are seeing a small blip but it is still up 22 percent from January this year.

“If you’re thinking of trading Bitcoin, making small profits incrementally, this might be a good moment to buy Bitcoin. But generally I think the value is going to be in the hundreds of thousands in the near future so it does not matter when you buy, so long as you can afford to lose it like any investment in life."