Bitcoin has been in the news a lot lately. The value of Bitcoin has surged, and continues to fluctuate rapidly.
Some people believe that Bitcoin is the future of currency, while others believe it is a bubble that will eventually burst. So, what is Bitcoin? And, can a non-profit buy Bitcoin?.
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain.
Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
So, what would happen if a non-profit decided to buy Bitcoin?
There are a few things to consider. First, because the value of Bitcoin is volatile, there is a risk that the non-profit could lose money if the value of Bitcoin decreases.
Second, because Bitcoin is not regulated by any government or financial institution, there is some risk involved in using it. Finally, because Bitcoin is still relatively new and not widely accepted, there could be difficulties in using it to make purchases or exchange it for other currency.
Overall, whether or not a non-profit should buy Bitcoin depends on the individual organization and its goals. If the organization is willing to take on the risks involved, then it could be a way to support the growth of Bitcoin and potentially make some profits along the way.
However, if the organization wants to avoid risk or needs stability, then it might be better to stay away from Bitcoin for now.