The Truth About Bitcoin and Cryptocurrency

If you bought just $1000 of bitcoins in July 2010, you would now have over $90 million on your hands From a mere $1 pop seven years ago, the cryptocurrency has steadily been climbing in value.

What’s driving bitcoin’s surge in value?

If you’re looking to invest in bitcoin, you can do so in three different ways

Number one, you can mine your own – which it’s very difficult. As competition for mining bitcoins has increased, only those with powerful computers and cash to shell out for energy costs can keep up with processing the increasingly difficult calculations. Number two, buy some from an online exchange. Or number three you can buy shares in a fund that invest in bitcoin. And if you’re looking to cash out, you can do so by selling your bitcoin directly to another user in exchange for another currency, or in an online exchange. Bitcoin’s real-world value may be slower to develop. As a day-to-day currency, it’s still hard to use. While there are some brick-and-mortar establishments that accept the currency – from hotel chains like Howard Johnson to certain restaurants – it’s still difficult to use out in the real world. Online, certain goods and services can be bought with the currency. As more companies and retailers begin to recognize the currency’s growth, adoption will follow. For now, the currency’s value lies in what it’s worth – with Bitcoin holders closely watching its value climb, wondering when -- if ever -- to cash out.