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What Is Bitcoin?

Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly, without an intermediary like a bank. Bitcoinā€™s creator, Satoshi Nakamoto, originally described the need for ā€œan electronic payment system based on cryptographic proof instead of trust.ā€ Each and every Bitcoin transaction thatā€™s ever been made exists on a public ledger accessible to everyone, making transactions hard to reverse and difficult to fake. Thatā€™s by design: Core to their decentralized nature, Bitcoins arenā€™t backed by the government or any issuing institution, and thereā€™s nothing to guarantee their value besides the proof baked in the heart of the system. ā€œThe reason why itā€™s worth money is simply because we, as people, decided it has valueā€”same as gold,ā€ says Anton Mozgovoy, co-founder & CEO of digital financial service company Holyheld.

Spiking bond yields driving sharp losses in tech stocks

A spike in interest rates since the start of the year has accelerated a rotation out of high-growth technology stocks and into value stocks poised to benefit from a reopening of the economy. The Nasdaq has fallen more than 10% over the past month as the Dow has soared to record highs, with a spike in the 10-year US Treasury yield acting as the main catalyst. It recently surged to a cycle high of more than 1.60% after starting the year below 1%. But according to Jim Paulsen, the Leuthold Group's chief investment strategist, rising interest rates do not represent a long-term threat to the stock market. Paulsen expects the 10-year yield to cross 2% by the end of the year. A spike in interest rates and its impact on the stock market depends on the economic backdrop, according to Paulsen. Rising interest rates amid a strengthening economy "may prove no challenge at all for stocks," Paulsen said.

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