What is Bitcoin?

Been hearing about Bitcoin lately? If that’s the case, you might have asked yourself the question above. If you’ve just tuned in like me, here’s a graphical explanation of what is Bitcoin and how it works.

bitcoin

To start things off, Bitcoin is an online digital currency that was introduced back in 2009. It is also known as the “Gold for nerds” and is different fom PayPal as it is not backed by an official currency. Bitcoin is its own currency that is not managed by any government or central authority. Watch the video below to be enlightened further.

Bitcoin is making a lot of noise nowadays that it has captured the attention of the financial sector, investors and venture capitalists due to its high volatility. As of writing, 1 Bitcoin (BTC) is equivalent to $117 US. (It was at an all time high of $266 last Wednesday) However, while the process of obtaining and holding BTC transactions are secure, the individual wallets and exchanges are still vulnerable to hack attacks. As to whether Bitcoin will become a viable currency in the future or not remains to be known.

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