However Tesla soon backtracked, stating that the firm would not accept Bitcoin due to concerns over how mining the currency requires high energy use and contributes to climate change.
The cryptocurrency rallied more than 9pc after that message, and is now above $40,000, although this is still down on high seen earlier this year.
Investors should steer clear, according to Felix Milton of Philip J Milton, a financial planning firm, because governments could intervene at any moment and outlaw it as a currency, making it illegal to own.
Secondly, it needed to be accepted as a store of value, like gold, but as it was launched only in 2009 it was too early to conclude this.
But it should not be an investment choice as part of a considered strategy and portfolio,” he said.
But not all professional investors are put off by Bitcoin’s volatility and newcomer status.
Gold has gone down recently and Bitcoin has gone up, so you should not treat them as the same thing,” he said.
There is one big similarity between Bitcoin and gold, according to Mr Cordero: they both have finite supplies.
“It will obey the laws of supply and demand.
Plus500, sells “contracts for difference” which allows you to track the price of Bitcoin without owning it.