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To really understand what is special about Bitcoin, we need to understand how it works at a technical level. We'll address the important questions about Bitcoin,

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Bitcoin is a peer-to-peer version of electronic cash that allows payments to be sent directly from one party to another without going through a financial institution. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work.

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However, Bitcoin is different than what you know and use every day.
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How does it fit within an investment portfolio, and what impact would an allocation to bitcoin have? Digital gold: Like the metal, bitcoin is a potential store of value. Bitcoin, by contrast, is anonymous but not private: identities are nowhere recorded in the bitcoin protocol itself, but every transaction performed with bitcoin is visible on the distributed electronic public ledger known as the blockchain.