Lufkin expert explains the craze surrounding Bitcoins

Source: KTRE Staff
Source: KTRE Staff

LUFKIN, TX (KTRE) - Matt Davis is a small business owner of in Lufkin. The Screen Geek owner has invested money in Bitcoin before it even became a mainstream term. He explains Bitcoin is a type of cryptocurrency.

"The most popular coin is going to be Bitcoin. Followed by Ethereum and Litecoin, which are alternative coins easily traded between public," Davis said.

Bitcoin works through a digital wallet which you can keep on your smart phone or computer.

It's decentralized from all governments and is used for peer-to-peer payments or purchases over the internet involving no banks. Additionally, Bitcoin can be used anonymously and internationally.

"At the current moment, you have a lot of people that are hopping into Bitcoin specifically as a speculative investment," Davis said. "They hear stories of people that have turned fifty dollars into a million dollars, and they want to be a part of that."

The currency was born in 2009, and now, it's picking up steam because of the numerous profit stories.

"I have ex-employees that have bought Bitcoin from me for cash, sold bitcoins to other people, or traded bitcoins for other currency between people locally and people online," Davis said.

The expert said Bitcoin is currently in a bubble because more and more people are attracted to the currency. He recommends people use caution when investing.

"I think in the very, very short future, government regulation will come, and that's why I encourage people not to invest any money any more than they are willing to lose," Davis said.

Bitcoins are purchased through special ATM machines and of course through mobile apps.

More than 100,000 merchants worldwide accept Bitcoin on the internet.

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