This week’s session took a different turn

Bitcoin Basics — Mathew Explains It Simply

It was a bit of a change of pace at this week’s meeting — we took a break from the usual routine to get our heads around something that keeps popping up in business chats: Bitcoin. With digital currency showing up in headlines more and more, we figured it was time for a jargon-free explainer. Mathew (one of our accountants) kindly stepped in to give us a straightforward run-through.

So, what is it?
In simple terms, Bitcoin’s a form of digital money you can send directly to someone else — no bank or middleman involved. It’s not issued by a government or controlled by a central bank. Instead, it runs on a global network of computers.

Mathew made the point that, just like we don’t need to understand how a phone works to use it, you don’t need to be a tech expert to get the gist of Bitcoin. But having a basic understanding helps, especially if you’re curious about its value or potential use.

Why’s it worth anything?
Mainly because there’s a limited supply — only 21 million will ever exist, and most of that’s already been mined. Compare that to traditional money, which can be printed endlessly (and often is). That scarcity is a big part of what gives Bitcoin its value.

Since it launched in 2008, Bitcoin’s grown massively — now valued at over $2 trillion. No staff, no office, no boss. Its appeal comes from being transparent, independent, and hard to tamper with.

How does it work?
Every Bitcoin transaction is confirmed by ‘miners’ — basically, very powerful computers solving puzzles to keep the system secure. When a miner solves one, a new ‘block’ of transactions gets added to the public record (called the blockchain). It’s all visible, so nothing’s hidden.

There are also ‘nodes’ — computers that help check everything’s above board. Miners get rewarded for their work, while nodes help keep things honest.

Any risks?
Definitely. Mathew was clear that Bitcoin can be a bumpy ride. Prices can swing wildly, so it’s not for everyone — especially if you’re after something stable. That said, bigger players like BlackRock and MicroStrategy are now involved, which could smooth things out a bit over time.

Security-wise, Bitcoin itself hasn’t been hacked, but some exchanges have. Most people use platforms like Coinbase to buy and store it. Others manage their own wallets, but that comes with more responsibility.

Looking ahead
Governments and banks are starting to take Bitcoin seriously — some even talking about using it as a reserve asset. It’s not regulated in the UK yet, but that’s expected to change. Once it does, it might become a more standard part of financial planning.

Quick recap:
Mathew gave a clear, grounded intro to a topic that’s usually wrapped in tech speak. Bitcoin’s not without risk, but it’s clearly not going away either — and it could play a bigger role in finance going forward.

We had 19 people in the room this week, 5 referrals exchanged, and over £9,000 in business passed.

If you want to dig deeper, feel free to drop Mathew a line. And we might well revisit this topic again soon.