Some people like myself don’t know what Bitcoin is and what you can do with it. I had read various articles on the BBC news app in the past about Bitcoin but I’ve actually had to Google it to find out a bit more. I still don’t fully understand the whole concept but then I probably will never use it.
Bitcoin is a payment system and a digital currency. From an investment perspective, it’s similar to stocks and shares. You buy at a certain price and the worth of one bitcoin will either go up or down. At which point you can decide to keep or sell the bitcoins. Just like with the stock markets , outside influences also affect the value of bitcoins. For example last December the People’s Bank of China declared that Chinese merchants could not accept bitcoins as legal tender. They also forbid the banks and payment processors from converting bitcoins in Yuan. Due to this, the price of the bitcoin fell.
However, if you look at the worth of the bitcoin since it was created, you’ll see that it has increased significantly. In 2013, the worth went from $13.36 at the beginning of the year to $1125 in November. It was so crazy that alot of investors became millionaires.
The value of bitcoins is changing all the time – it never closes unlike the stock market. So there’s a brilliant new resource on the Alfa Cashier site. It shows you the value of your transactions in real currency so you know wether the bitcoin’s value has gone up or down. As it’s a live exchange rate tracker it will be updating every minute, even if you’re already on the page.