What is Bitcoin (and All CryptoCurrencies)

Photo credit: Steve Jurvetson (https://www.flickr.com/photos/jurvetson/)

Cryptocurrencies are money on/for the internet that can be used in a variety of ways.

Bitcoin and all cryptocurrencies for that matter are not currencies, contrary to the implication. They are treated as a taxable commodity, but is not always the case.

Cryptocurrencies, in general, are peer-to-peer. They are digital in nature and have absolutely zero backing (as opposed to the Euro), save for the perceived value based on supply and demand.Due to the lack of backing, this can be scary for regular users to invest in since, if the value one day hypothetically drops to zero, or if someone steals/runs away with someone

Due to the lack of backing, this can be scary for regular users to invest in since, if the value one day hypothetically drops to zero, or if someone steals/runs away with someone else’s cryptocurrency, there is absolutely no way to retrieve that – it’s gone for good.

It’s also scary for governments that rely on people using a centralized currency specific to the country it represents as this is what helps fuel the specific countries’ economy. With cryptocurrencies being globalized and decentralized at the same time, it forces governments to rethink their strategies in how to incorporate this into their GDP.

The scariness of the above though is also an advantage since, in the event a government collapses and the money represented becomes worthless, cryptocurrencies will still be of value, if not moreso, as it transcends the government definition of money. A tell-tale example we like to bring up is Theodore Herzl.

That said, with an open mind you too can enjoy the benefits of bitcoin, ethereum, litecoin and the numerous cryptocurrencies that are here. As the site keeps getting built more information will be available for the absolute beginner to benefit from the ground up.

Go here to see where bitcoins are stored.