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The Aztecs used cocoa beans as money! Bitcoins are valuable because people are willing to exchange them for real goods and services, and even cash. Some people like the fact that Bitcoin is not controlled by the government or banks.
People can also spend their Bitcoins fairly anonymously. Although all transactions are recorded, nobody would know which 'account number' was yours unless you told them. In an online chat with social media users in January , the world's richest man, Elon Musk, said he was a big supporter of Bitcoin.
He even went as far as to change his Twitter bio to " bitcoin". He has repeatedly shown his support to online currencies in recent years and caused major movements in their values due to his own personal wealth and influence. This particular endorsement led to the value of Bitcoin to rise significantly. Every transaction is recorded publicly so it's very difficult to copy Bitcoins, make fake ones or spend ones you don't own.
It is possible to lose your Bitcoin wallet or delete your Bitcoins and lose them forever. There have also been thefts from websites that let you store your Bitcoins remotely. The value of Bitcoins has gone up and down over the years since it was created in and some people don't think it's safe to turn your 'real' money into Bitcoins. He said that he was "very nervous" about people using Bitcoin for payments pointing out that investors should realise its price is extremely volatile.
By this, he meant that the value could drop significantly at any moment and investors could lose a lot of money. Elon Musk becomes richest person in the world. Trump impeachment trial will go ahead after vote. Home Menu. Guide: What is Bitcoin and how does it work? Getty Images. What is Bitcoin? How does Bitcoin work? A Bitcoin wallet app on a smartphone.
How do people get Bitcoins? Denes Farkas. How are new Bitcoins created? People build special computers to generate Bitcoins. Why are Bitcoins valuable? Bitcoins are valuable simply because people believe they are. Why do people want Bitcoins? Is it secure? More like this.