Submitted by LISA of Myfinan... on Mon, 03/17/2014 - 12:57

Understanding finance is already complicated as-is (that’s why MyFinancialCoach is here in the first place); and the arrival of the so-called “Digital Money” makes it even so.

There have been a lot of questions about bitcoin (believe me, I was oblivious back then) like what the heck is it anyways? Let LISA give you a walk through.

What is a Bitcoin?

Bitcoin is the world’s biggest cryptocurrency (whaat?). It was introduced in 2009 and is the longest-standing, best-known and most widely-traded.

Btw : Bitcoin with a capital B is the software and system; while bitcoin with a small b means the actual money.

A cryptowhatacy??

A “cryptocurrency” simply means digital money (like the one you earn in Super Mario, but this one is legit!). It is not issued by any banks, nation or government (digital nga eh)

Are there other cryptocurrency in circulation?

Yes. There are other digital money that exist like “dogecoin”(which comes from a popular meme) and “Coinye West”(which is obvious where the name came from) and last year a magazine named 9 of the biggest cryptocurrency, but none of them as widely used as Bitcoin. Images below

How much does a bitcoin cost?

As of now 1 Bitcoin = 631.6 USD but the rate is very flexible and can fluctuate anytime (check how much your bitcoin costs here)

So what can I buy with a bitcoin?

Anything a bitcoin user sells like:

Drinks, food, clothing, cars, and yes, even houses (see here). Even the questionable in legality that are sold online like stoken credit card numbers, drugs, and can even be used for money laundering, so yes, let me repeat “ANYTHING”

How do I store and spend betcoins?

Since Bitcoins are digital, you store them online in your virtual wallet and can be transferred to anothers virtual wallet via an exchange of public and private security keys.

There are also physical bitcoins like these

This serves as your external hard drive with ALL your money; so keep it safe.

Like the stock market, Bitcoins fluctuate in value from time to time, so if you are thinking about using Bitcoins, be aware to always play it right.