A straightforward exploration of cryptocurrency fundamentals, from blockchain technology to Bitcoin's wild price swings, helping newcomers understand this controversial $2 trillion financial ecosystem.

From Columbia University alumni built in San Francisco
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From Columbia University alumni built in San Francisco

**Lena:** Hey Miles, I just read that Bitcoin and other cryptocurrencies got a major boost earlier this year when the SEC finally cleared Bitcoin for trading as exchange-traded funds. Apparently billions of dollars have poured in since then. I'm still trying to wrap my head around what cybercurrency actually is!
**Miles:** You're not alone there, Lena. It's fascinating how this whole ecosystem has grown to over $2 trillion in value, with Bitcoin alone worth about $1.5 trillion. Yet many people still don't understand the fundamentals of how it works or why it exists.
**Lena:** Right, and there seems to be such divided opinion about it. I heard the Bogleheads investment community actually banned discussion of cryptocurrencies on their forums! That's how controversial this topic is.
**Miles:** Exactly. And that controversy stems partly from Bitcoin's wild price swings. I mean, one Bitcoin was worth about $1,230 a year ago, then shot up to over $19,000 in December 2017, crashed to under $7,000 in February 2018, and now sits around $69,000. That's not exactly the stability you want in a currency!
**Lena:** That's mind-boggling volatility. So what's actually driving all this? Is it the technology behind it—what's it called, blockchain?
**Miles:** You've hit on something important there. Let's dive into what blockchain technology actually is and why it became the foundation for this entirely new financial ecosystem.