Bitcoin currency: what is it actually?

You can read reports about cryptocurrencies and bitcoins everywhere in the media - they are the currency of the future. But are you wondering: what is Bitcoin actually? We explain what a cryptocurrency is and how Bitcoin actually works.

via Kathrin

03/01/2018, 15:23

For a long time, a digital currency was more of a dream of the future and could only be found in science fiction films. Cryptocurrencies are now commonplace.

What is the Bitcoin currency all about?

Bitcoins are a so-called cryptocurrency: a type of money that only exists digitally - so you can't withdraw it from an ATM. The market value of the Bitcoin currency virtually exploded a few weeks ago, which is why it is widely reported in the media. However, it is now in free fall. If you are still interested, you can buy bitcoins on online trading platforms such as www.bitcoin.de.

Where can I pay with them?

Purchased bitcoins are stored in a digital wallet, for which you need a special computer program. You can then use the bitcoins online as a means of payment, although there are not (yet) many merchants who accept this currency.

Is the investment worth it?

Experts warn against the Bitcoin currency anyway: unlike real currencies, it is not backed by a state or central bank. There is also no concrete value behind Bitcoins. The price is extremely volatile. And there is no guarantee that its value will increase or that it can be exchanged for "real" money again at some point.