Why Are The Biggest Tech Bros Betting on Bitcoin?

Elon Musk just purchased $1.5 billion worth of Bitcoin through Tesla. Jack Dorsey has followed him up donating millions to cryptocurrency think tanks like Coin Center. What do these giants of tech know that we don’t? The answer is a lot, obviously. But while it would make sense for any small retail investor and day trader to throw their measly stimulus checks into their Coinbase account, we have to figure out if this is the sign of the times, that decentralized crypto currency like Bitcoin, and other blockchain knockoffs are the future of money. Or, is it just another trap ponzi scheme to suck out what little wealth collects at the bottom 99% of Americans.

Dorsey is no stranger to promoting Bitcoin. He once stated he believes it will become the “single currency” of the internet. Square, Dorsey’s fintech company where he also serves as CEO, made a $50 million investment in Bitcoin last year. Square’s Cash App gives users a platform to buy and sell bitcoin.

So what is Bitcoin?

Bitcoin is a type of digital currency that allows people to circumvent banks and traditional payment systems. It has become the most popular cryptocurrency, while others like Dogecoin are on the rise. Cryptocurrency relies on “blockchain” technology, which is a shared database of transactions that must be confirmed and encrypted. The network is secured by individual users called “miners” who use high-powered computers to verify transactions. The mathematical system controlling the generation of new bitcoins – which is decentralized and has no overarching central bank – has a hardwired maximum of 21 million coins.

Got that? Good. Because I barely understand any of the above myself.