A closer look at Bitcoin and what its future may hold

TOLEDO (13abc Action News) - It's a buzz word you've probably heard a lot lately: bitcoin.

(Image Source: Pixabay / MGN)

It's made some people a lot of money recently.

Bitcoin is described as a universal currency. It’s not controlled or backed by any government or any entity.

"It's not a government saying this is what it's worth. But it's the people saying this is what it's worth," said Nicholas Craig of 419Mining.

Craig runs a company creating equipment for bitcoin transactions. He uses bitcoin as currency right now. Places across the globe take it which now includes overstock.com

Craig believes this cryptocurrency, which bypasses banks and currency exchange, will be the future.

"It might not be bitcoin but I definitely think there will be a point where cryptocurrency will be, this is how you pay," said Craig.

Bitcoin value sky rocketed recently. At one point Wednesday, one bit coin was worth close to $17000.

"It makes no sense from a valuation standpoint unless they're the end game winner in all this. And that's the big bet. It's really an all or none bet," said Toledo financial advisor Alan Lancz.

Lancz says people need to be very careful if they invest bitcoin. It could drop at any time because it's considered a commodity. Only 21 million will be available. Lancz says this could be a bubble developing.

“People just going in at any price and really not understanding what their investment is or the mechanics behind it or what's even backing it. I think you're at the early stages of a bubble," said Lancz.

If bitcoin doesn't become "the" cryptocurrency then another one might. Another big one people are talking about is litecoin. There are hundreds of others but since it's early in this process it's not clear which will one stick around.

So be very careful of you invest or buy some and use it as currency.