BitBit Financial is owned by iMining Technologies, a public company traded on TSXV under IMIN.

What are cryptocurrencies?

Cryptocurrencies are digital money not owned by banks or governments.

In the history of money; seashells, cattle, alcohol, cigarettes and gold have performed the role of money (meaning they were used as a medium of exchange). Today, that role is performed by paper money and coins, known as Fiat money.

Cryptocurrency coins in sand

Lesson 01

So what are cryptocurrencies?

Cryptocurrency is a relatively new addition to the money system. Invented in 2008, cryptocurrency is digital money. It doesn’t exist in a physical form (no coins or bills!) but instead exist online only. Unlike fiat money, it’s money that is not controlled by a central bank or government.

Fiat money was invented in 1971, and is the first time in history that money was controlled by a central bank or government (known as central authorities). Before that, money was created and managed by the markets and the people themselves. The thing about controlling money is that central authorities can make all the decisions around money and print as much money as they need for their benefit – regardless of its impact on the rest of society.

Cryptocurrencies on the other hand act like a democracy. They are managed by a community of people that believe in the same idea: fair money and fair access to money. A group of developers work to create an online decentralized system that allows cryptocurrencies to be sent back and forth, without needing to go through a bank or government.

Think of Road Builders

They pave a large network of interconnected roads around the country so you can drive your own car, to your destination, at your leisure. You are always in control of the car. This is like cryptocurrencies.

Now Think About Airports and Flying

For most people, you’re reliant on the airport and the airlines for you to be able to fly. This is like fiat money where you are not actually in control of your money because you have to go through the bank (airport).

Some Similarities

Fiat money and cryptocurrencies do share some similarities

Buy and Sell Transactions

They’re used to buy and sell goods and services. For example, you can pay in bitcoin for a flight with Air Canada.

2. Cryptocurrency can be exchanged

A Cryptocurrency can be exchanged for another cryptocurrency. You can exchange bitcoin for ether, in the same way you can exchange Canadian Dollars for Euros.

3. A Form of Investment

Cryptocurrencies can be used as a form of investment. You can cash out when the price rises and make a profit.

Cryptocurrencies are considered the people’s money and next step in the evolution of money.