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.

Bitcoin, first of all, is something that should be totally avoided, in my opinion. It's a craze, a frenzy, a bubble that's popping and many people are losing their tail ends on it because their greed sucked them into it and didn't use any sound reasoning. Bitcoin is simply a unique, digital string of numbers. They're mined by high-end computers and many times it can take a year for a computer to even make one. It's not something physical, so it's not really a coin. And its not really a currency either, because if it were, it would be more widely used and it would be more stable. Sometimes it can swing 12-20% in a day. No one's going to use that for purchasing when their purchasing power could go down 20% from the previous day. In my opinion, it doesn't generate value. Blockchain is the underlying ledge technology behind bitcoin and other cryptos. There is likely a future use for it, more so than any of these "currencies".

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.