ABILENE, TX - You may have heard the term ‘Bitcoin’ used more and more these days.
Many are wondering what it is.
You can't put it in your wallet or hold it in your hand.
However, one Bitcoin is worth about $11k.
“Bitcoin is the largest capitalized cryptocurrency, which is an alternative currency that people can buy and sale,” said McMurry University’s Paul Mason.
He is the dean of a business school.
He explained that it's sort of like having money in cyber space.
There’s no central monetary authority.
You can invest anonymously, which is the selling point for many.
“It’s primarily purchased by younger people and those who are concerned about the health of the general economy,” Mason said.
There are hundreds of these types of cryptocurrencies.
Mason felt Bitcoin is a bit more risky.
“It’s not government regulated, it’s not constrained by government and that’s part of the appeal for the people who invest in it but it’s also one of the reasons it can have large swings in value,” Mason said.
Because people’s identities aren’t revealed, only their computer ID, it makes it easy for criminals to buy things secretly. It also lets investors avoid paying taxes.
“Foreign governments, like the British government for example, are trying to reign in Bitcoin,” Mason said.
Large swings in value and lack of regulation are reasons he does not recommend investing.
“If I was going to recommend a cryptocurrency it would be one of the lesser known ones,” Mason said.
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