Mike Wills, standing in for CapeTalk's John Maytham was left feeling astounded after coming across a headline that read: Bitcoin nears the 10 000 dollar mark as hedge funds plough in.
Wills spoke to Simon Pateman Brown, financial educator at Just One Lap to make sense of the bitcoin phenomenon.
Brown says a year ago, no one was interested or knew what bitcoins were. He adds that now things have changed drastically as just about everyone has jumped onto the bitcoin bandwagon.
Brown explains that bitcoins are purchased via exchange. These may be offshore or local exchangers. He warns however that choosing your exchange is important.
We've had exchangers be hacked, disappear and crash.— Simon Pateman Brown, Financial Educator at Just One Lap
There is no oversight. Be careful and do your homework on your exchangers.— Simon Pateman Brown, Financial Educator at Just One Lap
There about 1 800 new bitcoins being created a day and in time there will only ever be 21 million bitcoins created says Brown.
To hear more on the bitcoin click on the audio below: