In May 2025, a significant event called the Bitcoin Conference took place, sparking a wave of questions from interested clients about what Bitcoin actually is.
Originating in NYC, the first Bitcoin Conference has now evolved into a series of global events each year. These conferences reflect the growing global interest and investment in the sector of cryptocurrency.
For those unaware, Bitcoin is a decentralized digital currency, introduced to the world by an anonymous entity going by the name Satoshi Nakamoto in 2009. Unlike traditional currencies issued by governments, Bitcoin operates on a peer-to-peer network, facilitating transactions without the need for a central authority.
The creation of this cryptocurrency, or ‘mining,’ involves solving complex mathematical problems using high-performance computer hardware and software. This process generates new units of the digital currency.
These virtual coins are stored in a digital wallet, a tool that stores the private keys controlling access to the coins on the blockchain, rather than the coins themselves.
Bitcoin and Cryptocurrency: Why the Hype?
• Decentralization: One of Bitcoin’s greatest strengths is its independence from any central authority. This decentralization makes it resistant to censorship and interference. Control is distributed across a global network of computers, which all follow the same rules to verify and record transactions.
• Transparency: All cryptocurrency transactions are recorded on a public ledger known as the blockchain. This technology enhances efficiency, transparency, and security in transactions, making it a popular tool for businesses worldwide.
• Global Transactions: Bitcoin facilitates quick, low-cost international transactions, bypassing the need for traditional banking systems and eliminating currency exchanges and associated fees.
The Downsides of Bitcoin
• Market Volatility: Bitcoin markets are often volatile and illiquid due to their speculative nature.
• Regulation and Fraud Concerns: Cryptocurrencies, being unregulated, are susceptible to fraud and anti-money laundering concerns.
• Security Risks: Ownership of a given crypto asset is established by controlling a password or “private key.” If this password is lost or stolen, the related crypto asset is lost forever.
• Environmental Impact: Mining Bitcoin consumes large amounts of electricity, raising environmental concerns.
Besides Bitcoin, thousands of other cryptocurrencies, often referred to as “altcoins,” are also available, each with its unique features and use cases. While Bitcoin remains the dominant store of value, Ethereum (ETH) is its closest competitor, thanks to its broad developer base, real-world use cases like NFTs and DeFi, and its transition to proof-of-stake for enhanced energy efficiency.
As the cryptocurrency sector continues to evolve, events like the Bitcoin Conference serve as both indicators and catalysts for innovation and adoption. Grasping the fundamentals of Bitcoin and its role in the changing financial landscape is essential, whether you’re a curious newcomer or an experienced investor.
About the Author: Bronwyn L. Martin is a Financial Advisor and Chartered Financial Consultant with Martin’s Financial Consulting Group. With 25 years of experience, she specializes in fee-based financial planning and asset management strategies. Contact her at www.ameripriseadvisors.com/bronwyn.x.martin.
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