Bitcoin

Local investor talks about investing in bitcoins

Cryptocurrencie s like bitcoin can be a wild ride.

News 12's brian armstrong finds out what's special about cryptocurrencies, and why people are so divided over their actual value.

The only question is what's the price?

Using digital currency is nothing new, that's done when we use a credit card or buy something online.

A vast majority of the money we spend a day is not physically a paper dollar, it's a digital representation.

Cryptocurrency's big difference is there is no physical coin.

The most well-known cryptocurrency is bitcoin.

Over the weekend bitcoins's price passed 61 thousand dollars according to coindesk 20.

Since this time last year, it is actually up in dollar terms 900%.

But we've also seen periods of time, where it's fallen 80 or 90%.

Despite its currently high trading value hopkins says it's not stable enough to be an official currency.

The value of our dollars remains relatively stable.

That's because it's backed by the us government.

With cryptocurrencies, it's not backed by anything.

Quite literally it's only worth what someone else is willing to pay for it.

Hopkins says although it's unlikely cryptocurrency will become our new currency, companies such as tesla do agree to accept bitcoin as payment.

Suppose i signed a contract to buy a tesla two weeks ago and then i go to pick it up today.

I have to go turn my dollars into bitcoin, the price of that car went from $60,000- $80,000 because of the change in bitcoin value.

Some financial experts say cryptocurrency is the way of the future.

Others say investing in cryptocurrency is similar to gambling in vegas.

You can talk to a lot of people who are real bitcoin proponents who will definitely disagree with that.

They see the future of bitcoin as replacing currency and in my opinion, it's gambling.

You've had a pretty nice run how much higher going to go is anyone's guess.

Brian armstrong news 12 now hopkins says if you are interested in investing in cryptocurrency, view it as a small part of your portfolio, that you're willing to lose due to the high risk.

Hopkins also adds a major success from cryptocurrency is with block chain technology, which helps keeps