If you’ve been following the news, you undoubtedly know a few things about Bitcoin right now.
One: It’s a cryptocurrency.
Two: One Bitcoin is worth more than $40,000 in U.S. dollars, although the price fluctuates wildly day to day.
Three: Electric vehicle manufacturer Tesla recently invested in Bitcoin and announced it would soon allow people to purchase its cars using the cryptocurrency.
But, if you’re like many people, you’re still fuzzy on a few things, including exactly what cryptocurrency is, how it works and if it’s a safe way to invest your money.
History of Bitcoin
Bitcoin was invented in 2009 as a form of digital currency. Unlike paper money or debit cards, which represent paper money the buyer holds in a bank, Bitcoin has no physical form. It’s all stored digitally, providing increased security over checks, paper money transactions and even other digital transactions, which, again, represent the exchange of paper money held in accounts.
As of Monday morning,