What is Bitcoin?
Bitcoin is the most popular and valuable cryptocurrency in the world.
Bitcoin is a pioneering digital currency, as it is the first one to gain widespread adoption. It was created in the wake of the Great Financial Crisis of 2008, when public trust in the US financial system was particularly low. Bitcoin founder Satoshi Nakamoto's vision was to create an alternative to the centralized financial system.
He released software in 2009 that anyone could run on their computer. Functionally, the Bitcoin blockchain logs all movement of bitcoin (the currency; symbol: BTC) as it is bought, sold, sent to, and received from public addresses.
Bitcoin's blockchain will also cap production of new BTC once the amount produced reaches 21 million. The perceived scarcity of BTC, created by this production cap, has driven up the price. One bitcoin was worth cents in 2009, but is now worth thousands of dollars in 2022. The cryptocurrency gained popularity and recognition from the public, as early speculators accrued real wealth - akin to a digital gold rush.
To this day, Bitcoin is still focused on being a way everyday individuals and businesses can pay for products and services, though this use case has yet to be proven viable. As of July 2022, the value of all bitcoins in circulation is $420B - or 41% of the value of all cryptocurrencies combined.
This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, UNest does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information.
Don't just take our word for it
Hear what trusted money experts say about why UTMA and UGMA accounts can be a smart way to invest for a child’s future.
There are some tax advantages to using UGMA and UTMA accounts… Since they’re in your child’s name, the accounts will be taxed according to their tax bracket… There are no contribution limits on UGMA and UTMA accounts.
Dave Ramsey
Personal Finance Expert
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Investing for your kid’s future
Dave Ramsey
Personal Finance Expert
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...you could consider opening an account where you can dive deeper with the kids by your side. The easiest way to do so is to open a custodial account, known as an UGMA ... or UTMA ... account.
Jill Schlesinger
Emmy winning Business Analyst
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Straightforward “starter” investing account for kids
JILL SCHLESINGER
Emmy winning Business Analyst
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You can give children money that can accumulate somewhat tax-free over time... I love them (UTMAs) because they were like, trusts that you didn't need lawyers to create.... I think it's one of the better tax breaks around though. I know hunting for tax breaks may not sound very exciting, but that's how you take care of your family.
Jim Cramer
CNBC Host
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Give children money that can accumulate over time
Jim Cramer
CNBC Host
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