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The current high is being attributed to surging demand in China, where authorities warn it is used to channel money out of the country. The past months' surge is a major reversal for Bitcoin, which plummeted in value in 2014 after the largest exchange collapsed. The value of Bitcoin has been volatile since it was first launched in 2009, and many experts have questioned whether the crypto-currency will last. Earlier this year, Chinese authorities cracked down on Bitcoin trading in an attempt to stop money flowing out of the country illegally. But the closer scrutiny from Beijing only briefly sent the currency lower. After it had soared to record highs in January , it has since picked its steady rise in value. How Bitcoin works Bitcoin is often referred to as a new kind of currency . Yet like all currencies its value is determined by how much people are willing to exchange it for. To process Bitcoin transactions, a procedure called "mining" must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution.
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