Like the splitting of the atom – but perhaps not as significant to the whole of mankind, the bitcoin split into two on August 1. We now have bitcoin cash.
For the less knowledgeable investor, the bitcoin is a digital currency which was launched in the wake of the financial crisis in 2009, borne out of a general mistrust of the existing financial institutions.
Unlike a traditional currency, the bitcoin has no central monetary authority. Instead it has a peer-to-peer network made up of users’ computers. Without requiring physical presence, bitcoins do not have material form (except in a few cases where companies have fabricated ‘physical’ bitcoins.)
Instead, bitcoins work as a ‘public ledger’ with a constantly updated account of every transaction ever made replacing currency. This is known as the block chain.
Rise of the bitcoin
In June of this year, the digital currency hit an all-time high of over $3,000 (for one bitcoin) taking its overall market capitalisation to $114 billion.
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