Bit Coin what is it?

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There has been a lot of talk out there about Bit Coin recently. I have known about Bit Coin almost from the beginning. Honestly I have not given it much thought. And until last week it wasn't that relevant until I brought it with my financial adviser. He promptly told me that he would not engage in a conversation about Bit Coin. And really that is true most financial professionals will not talk about it because of its risky platform.

It is exciting when technology creeps into our real world and show us how powerful it really can be. And technology really affects our everyday lives probably more than we realize. All our bank accounts are virtual and many of our transactions are digital. While I cannot find update statistics digital transaction are on pace and may have very likely surpassed cash transactions.

So what about Bit Coin?

I cannot tell you if it is something  you should get into. For our purposes today I will explain how it works and then you can discuss with your financial adviser what you should do.

**Information is from Bit Coin Wiki FAQ**

Q. What is Bitcoin?

A. Bitcoin is a peer-to-peer currency. Peer-to-peer means that no central authority issues new money or tracks transactions. These tasks are managed collectively by the network.

Q. How does Bitcoin work?

A. Bitcoin uses public-key cryptography, peer-to-peer networking, and proof-of-work to process and verify payments. Bitcoins are sent (or signed over) from one address to another with each user potentially having many, many addresses. Each payment transaction is broadcast to the network and included in the blockchain so that the included bitcoins cannot be spent twice. After an hour or two, each transaction is locked in time by the massive amount of processing power that continues to extend the blockchain. Using these techniques, Bitcoin provides a fast and extremely reliable payment network that anyone can use.

Here are the facts about BitCoin

  • Bit Coin is anonymous. Bit Coin can be used to launder money because no identification is required.  You simply run it and there is no accountability.

  • Bit Coin is not regulated. Meaning no government or bank can stop or control how it works. 

  • Bit Coin is irreversible. Once you send or receive Bit Coin you cannot send it back or get it back. 

There is a lot to Bit Coin more information can be found on the WIKI 

Bit Coin has a lot of concerns over the security of how it is run. My advice, if you don't understand the risks then do not use it.

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