We’ve all heard about Bitcoin. We’ve heard about people making lots of money from it, how its value fluctuates, the questions and controversies around it, and people losing money after investing in it. 

It’s bitcoin, the seemingly ubiquitous form of so-called “cryptocurrency” that’s suddenly everywhere and yet, somehow, nowhere.

You may have wondered about bitcoin and whether it’s a practical investment strategy, maybe even the currency of the future, but aren’t sure where to start. A few basics can help you understand if bitcoin is right for you and get you started.

What is Bitcoin?

Bitcoin is one of many forms of cryptocurrency, essentially a digital form of currency usually referred to as coins. Government entities typically don’t control cryptocurrencies. Instead, those who trade them and use them to make purchases online ascribe their value. These currencies, including Bitcoin, rely on “blockchain” technology—a decentralized ledger of all transactions using cryptocurrency. One important thing to understand about cryptocurrency is that it is used on a peer-to-peer system, meaning no centralized bank or authority is involved in its production or use.

Who created it?

There is debate around the true identity of Bitcoin’s creator, who goes by the name Satoshi Nakamoto online. Nakamoto aimed to create a “peer-to-peer electronic cash system” detailed in a whitepaper in 2008. As the first and most common cryptocurrency,…