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I've read several articles on LI regarding Bitcoin; I've got to say I'm generally lost after a couple of paragraphs. Could you provide some background in laymans' terms on what the bitcoin craze is all about. (1) I'm assuming it is "virtual currency", so how goes it generate value? (2) A short comment on what blockchain technology is all about, (3) any other comment that may provide better understanding for the non-technical.

Hope this helps.

I read the wikipedia definition, but the investopedia article was much more informative. Thanks much. I'm well aware of your position on bitcoin and I have no interest in them at all. I'm simply trying to get a fundamental understanding of the concept. Since they really are not a physical item, I was a little confused about how their value was determined and why people would be interested in investing in them in the first place. I guess I'm still a little confused about how the "value" can go from $1000 to $19,000 and who is making money and losing money on them, if there is no real value; but I guess someone is actually paying money for these things.


I'll study the investipedia article in more depth, and start reading some other articles on them. Things will eventually give me a better understanding. Appreciate you time. Thanks again,

They get interested over anything that sounds new and eclectic. Most investors in it can't tell you a solid reason as to why they're in it, how they value it, when it would be overvalued, etc. It was a totally emotional decision for most...much like the tulip mania, where people bid up to huge sums, a mere flower. And it came crashing down. Same thing happened with cabbage patch dolls and beanie babies too and they had no great value either. Today, bitcoin has crashed from near $20,000 down into the $8,000ish area (and at times lower). Sure, at some point, it could have a bear market bounce higher...but it still won't be able to prevent the biggest crash which is still yet to come.