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Bitcoin is on the up right now (Photo by Omar Marques / SOPA Images/Sipa USA)

Bitcoin, the digital cryptocurrency, appears to be rising in value again right as the UK enters a deep recession.

The value of bitcoin increased 3% over the last 24 hours, taking its value up to $12,000 for the first time in over a year. It has fallen briefly again to under that amount at time of writing but followers seem bullish.

The virtual currency is a long way off the $20,000 high it hit in 2017 but it nevertheless is continuing to grow in value.

The origins of bitcoin mean theres a finite supply so, similar to gold, it cant be changed by inflationary measures like quantitative easing. Whats more, because bitcoin is decentralised, it doesnt come under the control of any one government or entity.

Its quite possible that investors are seeing the cryptocurrency (along with other such digital currencies) as a kind of safe haven in turbulent times created by coronavirus.

Inflation is currently low but real yields are across the board negative negative real yields and the monetary stimulus/spending has driven investors to seek out inflation hedges such as gold, Seamus Donoghue, vice president of sales and business development at METACO, told Bloomberg.

Given its limited supply and growing institutional acceptance, Bitcoin will also likely benefit from the market seeking inflation hedges.

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Bitcoin price is surging as investors turn back to cryptocurrency - Metro.co.uk