By now, many people have heard the stories of average men and women becoming millionaires by investing in Bitcoin. Yet most people don’t know what Bitcoin is, how it works, and why there’s been a heated debate on whether or not one should invest in this currency.

Bitcoin is a form of cryptocurrency, a decentralized and digital currency that is protected by encryption methods, according an article from NBC. This means Bitcoin is not protected by a government or controlled by a bank.

Without a power looking over this cryptocurrency, Bitcoin is free from any transaction fees and regulations. Instead of being regulated by an official body, Bitcoin uses a public ledger to keep a track of online purchases, showing who sends and who receives bitcoins, and in what quantity.

This way, hundreds of people can keep track of any interaction that happens and confirm there is no fraud involved. Junior Taj Wilkinson explained this saying Bitcoin is supported by a “blockchain or virtual ledger, which cannot be tampered with because of mining, a concept used to authenticate interactions.”

In short, the electronic ledger of all Bitcoin transactions is accurate because everyone has a copy, and anyone can update it, but their ledger has to be able to sync up with all of the other ledgers.

Unlike traditional currencies, Bitcoin doesn’t have any actual commodity backing it up, making it, according to Wikipedia, a “fiat currency,” or a currency backed up by faith and credit rather than an actual commodity such as gold.

Bitcoin has a high specific value because of its rarity and scarcity. Currently, there is a limit of 21 million bitcoins allowed in circulation.

The person who first successfully confirms a Bitcoin transaction earns about 12.5 bitcoins. Bitcoin values fluctuate frequently. Many also do not trust Bitcoin because of its anonymous owner and ledger.

Bitcoin has been a center of debate ever since it has become an international investing trend. According to articles from CNBC, prominent figures in business and commerce such as Waleed bin Talal and Warren Buffet have spoken pessimistically about the cryptocurrency, claiming it is a disaster in the making, and that people should stay away from it.

Bitcoin has recently had a problem with hacks including a major one that happened to the firm NiceHash in which the company lost an estimated $75 million in Bitcoins, according to CNN.

Many people think Bitcoin’s recent hacks are a sign to stay away from cryptocurrency. Mr. Nelson Odoms, a technology teacher, said he doesn’t like the idea of cryptocurrencies. He said that “cryptocurrencies are too exposed to dangers such as hacking.”