Bitcoin- What is it and why is it all over the news?

Bitcoin- What is it and why is it all over the news?

Over the past few years you may have heard or read something about a new “currency” or a new “investment” called Bitcoin. Many people are not really sure what it is or why it exists. Here is a quick guide to bitcoin.

Dictionary.com defines Bitcoin as; a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Bitcoin is a crypto currency that is used and generated through a blockchain. A blockchain is many computers connected together verifying the information of each other to be true and accurate and are secured through cryptography.

Bitcoin is a digital currency, similar to having money in a paypal account, the difference being how the money is stored, the fees associated with transaction and that your money can not be taken away or frozen and can be sent anywhere in the world.

More and more stores, retailers and service providers are accepting and paying for things with bitcoin. The value of a bitcoin fluctuates to extremes with it being such a new and hot topic and with so many people still unsure of what it is, what it does and if it is something that is on the up and up.

Still not sure what it is, here is a great video that explains what bitcoins are. https://www.youtube.com/watch?v=Gc2en3nHxA4


Disclaimer: This article provides information only and is not intended to confer financial advice or opinion. If you have any further questions please consult a Financial Planner. Please note as well that many of the statements herein are general principles which may vary on a case by case basis.