Chinese Investors Flock to Bitcoins
If you’re bored with bonds, stocks, and other common investments, you may want to consider an alternative – Bitcoin. The virtual currency gained traction around the world following the Cyprus bailout, when many U.S. investors set their sights on it. Now, it’s the latest investment rage in China.
Bitcoin is anonymous, so no one knows how much you have or spend. You can use the digital currency just like cash to buy goods and services, as long as the seller accepts it.
bitcoinsBitcoin’s main draw has been its complete lack of regulation. There’s no central bank or Federal Reserve. It’s not backed by anyone or anything.
There is, however, regulation to the way Bitcoins are produced. New Bitcoins can only be obtained through a “mining” process on a computer. The “miner” must use special equipment to solve algorithms that will unlock Bitcoins in the virtual world.
And it’s not easy. It requires time, massive amounts of electricity, and special computers. And there are only 21 million Bitcoins available to be mined.