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What is this bitcoin?

I know I keep hearing stuff, but if it's not U.S. money, and it's not Euro cash, what is it? Who makes it? How does the value of the coin actually increase? Keep the answer simple so I can explain it to kids!

2 Answers

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  • 7 years ago
    Favorite Answer

    It's a made-up currency that only exists online. It's heavily encrypted to try and make it impossible to steal. There is a certain amount of new bitcoins released every year. The value increases the same way any currency or product increases in price - more people are wanting to use bitcoins than there are bitcoins available. SO they are willing to pay more and more money in order to get their hands on some bitcoins.

  • Anonymous
    7 years ago

    Its just amazing how much information is available online:

    http://en.wikipedia.org/wiki/Bitcoin

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