There is a lot of talk going on today about how Bitcoin and other cryptocurrencies are an option for investing or not. Those who have invested in Bitcoin a year ago have seen the value of their BTC soar beyond expectations late in the last year, then fall to a much lower level a few weeks later – the increase is still massive (today, one BTC trades as about $8,000 compared to just above $1,000 one year ago).

I have been writing about cryptocurrencies lately. I think I need to post something very basic about them, here. Let’s not think of Bitcoin, or any other currencies as investment options right now, but as a payment system, and look at the way it works compared to banks.