Bitcoins: A Brief Overview
October 25th, 2017

Bitcoins: A Brief Overview

If you like to keep track of current investment trends, you may have seen lots of articles recently about Bitcoin and its surge in value. But what exactly is Bitcoin, and is it something that is worth taking the time to investigate and employ as a strategy for your own financial goals?

When Did Bitcoin Emerge?

Bitcoin was created in 2009 by computer programmer Satoshi Nakamoto as a peer-to-peer electronic cash system. Rather than relying on one central monetary authority, Bitcoin uses “cryptocurrency,” which allows for un-trackable, anonymous, un-taxable transactions.

Is Bitcoin a Currency?

It seems that Bitcoin is a delicate balance between a commodity and a currency, with its commodity value linked to its currency value. This fine line is what allows Bitcoins to be mined using specific computer algorithms and also accepted as currency at various retailers.

Are Bitcoin Exchanges Secure & Stable?

While initially it was thought that Bitcoin exchanges are secure due to the use of cryptography, in recent years, there have been some instances of online hacking in which large sums of Bitcoin were stolen. Bitcoin has also seen volatile market swings, which leave some questions as to whether exchanges are stable. Additionally, there are plans for the Bitcoin enterprise to branch off into new divisions, with the repercussions of this alteration yet to be seen.

Where Can Bitcoin Be Used?

Initially, Bitcoin was intended to be used for online niche markets, such as for websites and online services. While there are some instances of illegal dealings due to Bitcoin’s anonymous nature, there is a growing trend that local businesses are now accepting this unique form of payment.

At BlueRock Wealth Management, we are committed to helping you achieve your wealth management goals, and our financial advisors can help you weigh the pros and cons of a Bitcoin investment. We’ll also be happy to discuss your short and long-term investment goals. Contact us today.