The whole thing is that nobody really understands it! That’s the main selling point:
“We have a genial scientific scheme, invest in the future”.
And gullible people do.
Basically encrypting scheme which allows only the owners of the key to draw on it and sell it to other keys.
The ledger is kept on autonomous computer network. To give the people keeping the network some incentive, they are rewarded by getting some of the currency (miners).
The biggest advantage - could be hidden, and easy transferred across the borders.
So, I believe, the main investors are the cartels, mafias, oligarchs and money launderers.
By the way, it is not too safe, hackers stole a lot of it, if you forget your key, you are out of luck, if all miners decide they had enough, the thing will evaporate on itself.
It is not backed by anything.
Kind of a collectible, worth what people are willing to pay.
Those are my own impressions, correct me if I am wrong.
Just do not tell me “This is the future” or “amazing science”.
As far as hackers stealing, wouldn’t they leave a digital trail to whatever place they conv rt the money into, well money?
And I agree, cartels and other underground economies love this crypto currency.
But the more I read about block chain the more it appears just as hyped as crypto and another dead end.