What the Heck is Bitcoin?...

Welcome back to another edition of "Rolling in Dough" Newsletter, where we serve up the simplest ways to save more, spend less, and build wealth with regular insights, consumer psychology hacks, and tiny tips to do today. I hope to make your financial journey a little fun, simple, and totally doable, where ever you are on your wealth journey.

🤔 What the Heck is Bitcoin?

Let’s start from square one. Bitcoin is one of the hottest, most well-known forms of crypto.

Crypto, short for cryptocurrency, is a whole world of digital money with different coins serving different purposes.

Short version—Bitcoin is digital money you can use online, kind of like cash but without the coins, paper, or banks.

Transactions happen on the blockchain, which is like a giant, super-secure Google spreadsheet that lives online.

It keeps track of every Bitcoin transaction ever made, and once something’s recorded, it can’t be changed.

Instead of one central place checking transactions, Bitcoin uses a network of computers that agree on who owns what, kind of like a bunch of friends confirming they saw who paid for lunch.

🤷 So What?

Bitcoin was created in 2009 by a person (or group) who goes by the name Satoshi Nakamoto.

Who are they? No one really knows. It’s like the Beyoncé of money—iconic, but private.

What makes Bitcoin so special?

There’s a hard cap: only 21 million Bitcoins will ever exist. That’s it.

It’s like limited-edition sneakers—when they’re gone, they’re gone.

This scarcity is why people sometimes call it “digital gold.”

So, why does it matter?

People love Bitcoin because it’s decentralized (fancy for: no one controls it), secure, and it lets you send or store money without needing a bank or middleman.

That’s huge if you want financial independence or live somewhere with limited access to traditional banking.

Plus, it’s changing how we think about money—like owning a piece of the internet itself.

🚀  Why is Bitcoin Popping Now?

Bitcoin is having a MOMENT 💁‍♀️, and everyone’s buzzing about it. Here’s what’s going on:

1. It’s flirting with $100K: The price of Bitcoin is climbing faster than the fees on Uber Eats. Hitting new highs always gets people talking.

2. More people are hopping on: It’s easier than ever to buy Bitcoin thanks to apps like Cash App and PayPal.

3. Big players are backing it: Big names like Tesla and Square have shown interest in Bitcoin, which gets everyone curious.

4. It’s scarce: With only 21 million Bitcoins out there, demand is rising—and prices with it.

5. Crypto is cool: Bitcoin is the OG cryptocurrency, and as the whole crypto space grows, Bitcoin rides that wave.

🪙 So, Should You Buy Bitcoin?

If you’re thinking about diving into Bitcoin, here are a few things to keep in mind:

1. It trades 24/7: Unlike the stock market, Bitcoin doesn’t sleep. The price can change at any hour, any day.

2. Volatility is wild: One day it’s up thousands, the next it’s down just as much. Only invest what you’re okay losing.

3. It’s still new: Bitcoin’s been around for a little over a decade—not long compared to stocks or real estate for example.

4. Buy wisely: Stick to trusted platforms like Coinbase, Robinhood, Binance, or even Cash App, and think about getting a secure wallet to store it.

5. Know your taxes: Any gains from Bitcoin are taxed, so keep that in mind if you’re selling or trading.

6. Start small: Dip your toes in with what feels comfortable—you don’t have to go all in on day one.

🍩 FOOD FOR THOUGHT

If you’d bought $100 worth of Bitcoin in 2010, it would’ve been worth over $5 million during its peak in 2021.

But here’s the twist: in the same year, its value also dropped by nearly 50% in just a few months. Bitcoin’s rollercoaster ride is part of what makes it exciting—and risky.

⏩️ Beyond Bitcoin: What’s Up with Other Crypto?

Bitcoin might be the original, but it’s not the only player in the crypto game. Here’s some other notable names in the crypto world:

• Ethereum (ETH): The second-largest crypto and the backbone of a lot of cool tech like NFTs and decentralized apps (dApps). It’s like the app store of crypto.

• Binance Coin (BNB): A token tied to Binance, one of the biggest crypto exchanges. It’s often used for trading fees or discounts on the platform.

• Tether (USDT): A stablecoin pegged to the U.S. dollar, so it’s less volatile. Think of it like the calm in the crypto storm.

• Cardano (ADA): Known for being eco-friendly with its focus on sustainability and energy efficiency.

And some niche players making waves:

• Dogecoin (DOGE): The meme coin that started as a joke but gained serious attention thanks to Elon Musk.

• Solana (SOL): Popular for its speed and low fees, making it a rising star for developers.

Crypto is a big, evolving world with something for everyone—from the tech-savvy to the meme enthusiasts.

Whether you’re dipping a toe in or just crypto-curious, there’s always more to explore.