What is Bitcoin? According to Oxford Dictionary, Bitcoin is “a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.”

In other words, Bitcoin is a digital currency that is not backed by any government or country. Instead, it is backed by people’s confidence in new technology called “blockchains.” According to Bitcoincasino “In the world of cryptocurrency, Bitcoin has come out as the clear winner in terms of value, trust and reliability.

A blockchain is a distributed network of verification, or multiple computers from around the world working together, which confirms that a transaction has happened.

Backed by confidence in blockchains, people can freely transact with each other without the need to go through a central bank or government authority, which typically takes a lot of time and can be costly, especially if transferring across countries.

For example, people don’t have to convert US dollars to Fiji dollars, and pay foreign exchange fees and have to wait a long time for the transaction to happen. Using blockchain technology, people can transfer Bitcoin or other digital currencies quickly and easily, with less fees involved.

According to Bankrate, Bitcoin isn’t the only cryptocurrency. There are now hundreds of other cryptocurrencies, and each have different features, and all leverage blockchain technology.  Ethereum for example is another well-known cryptocurrency that uses the blockchain technology not just for currency, but to verify contracts between people as well.

Cruz also shared, “I solely accumulated about $1,500 dollars worth over the course of four months, and sat on it and as the currency started to go up in value.  This was challenging for me to do, because my wife was telling me to convert it back to US dollars, and my dad kept putting articles on the table about how [Bitcoin] was like a bubble and it was going to burst!”

Senior Nick Esquivel shared, “I invested in Litecoin and [the currency dropped] and I lost most of my money.”

“Right now [the value of one Bitcoin] dropped almost 50 percent so it’s at like $9,000 or $10,000, but it’s highest was like $19,000 or $20,000,” added Esquivel.