People simply ‘mine’ BTC by solving complicated mathematical algorithms. The total quantity of BTC to be produced will be capped at 21 million. This makes them extremely rare and valuable. However, Bitcoin is also volatile. Its value can drop several hundred dollars within seconds, or appreciate equally as sharply. As with other digital currencies, they are stored in a digital wallet, on a user’s computer, external hard drive or in the cloud. There is currently no insurance available to safeguard BTC investments, although computer encryption technology and safe storage are a guarantee against theft. It is traded against fiat currency on reputable exchanges and trading platforms, and the current rate is $2,261.31 (July 2017). It peaked at $3,018.54 on 11 June 2017. The current supply of BTC is 16,431,775 coins, and the currency has a market capitalization of $43 billion.
