Bitcoin is rallying as more companies signal
the digital currency could eventually gain
widespread acceptance as a means of payment.
The vast majority of those who have acquired
Bitcoin have treated it as a commodity, like gold,
with few places accepting it in exchange for
goods or services.
Companies have been leery because of Bitcoin’s
volatility and its use by parties who want to
avoid the traditional banking system for a
myriad of reasons.
Last week, however, the electric car company
Tesla sent a tremor through the digital currency
markets, saying that it was buying $1.5 billion
in Bitcoin as part of a new investment strategy,
and that it would soon be accepting Bitcoin as
payment for its cars.
BNY Mellon, the oldest bank in the U.S., saying it
would include digital currencies in the services
it provides to clients. Mastercard said it would
start supporting “select crypto currencies” on its
network. And Blue Ridge Bank of Charlottesville,
Virginia, said it would allow cardholders to
purchase and redeem Bitcoin at 19 of its ATMs.
As its price keeps rising, here’s a brief look at the
bitcoin frenzy:
HOW BITCOINS WORK
Bitcoin is a digital currency that is not tied to a
bank or government and allows users to spend
money anonymously. The coins are created by
users who “mine” them by lending computing
power to verify other users’ transactions. They
receive bitcoins in exchange. The coins also can
be bought and sold on exchanges with U.S.
dollars and other currencies. Some businesses