The Queen’s bankers dismiss bitcoin as pure speculation as it smashes through $12,000

Ms Chovin said the digital currency’s rise is not based on any underlying fundamentals which would make it a suitable investment.

“Our view at Coutts is that, as an investment asset, electronic currencies like Bitcoin have nothing but sentiment backing them up,” she said.

The bank acknowledges the returns “were always going to attract attention”while “novelty value” has helped to boost the market, but that the soaring demand driving the price upwards remains “pure speculation”.

They are also “are vulnerable to government sanctions and lack the kind of data we look for to gauge value. We therefore have no current plans to include them in our investment strategy,” Ms Chovin said.

Coutts fears that the wider technology sector altogether could be experiencing a bubble-like rise.

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