I had a conversation the other day with a very forward thinking and progressive business owner when the conversation turned to Bitcoin and whether their business accepted this type of digital currency as payment for services. This business owner had never heard of it, which made me stop and think, I’m sure there are many others out there who may have heard about Bitcoin or any one of the other more than 800 forms of cryptocurrencies that have emerged but really have no idea what they are or how they work.

Since I am only just learning about this form of paying for products and services myself, I thought we could learn together!

An overly simplified explanation of Bitcoin is that it’s a digital currency that’s not controlled by a central authority such as a government or bank. Rather it’s created by “miners,” who use computers and specialized hardware to process transactions, secure the currency’s network and collect bitcoins in exchange.

Supporters say it allows for more secure transactions over the internet because the private information of the parties involved in the exchange is not revealed. That’s in part due to the blockchain which is a technology that records cryptocurrency transactions chronologically in a digital ledger.

There are also exchanges that have been formed for those of us who are not quite sold on the concept of actually owning cryptocurrency. You can find any one of several newly established exchanges that deal in these types of investments. This brings a certain legitimacy to the world of cryptocurrency and may help guard against the wild price fluctuations that have become almost standard in the market.

Several reputable investors do not believe in Bitcoin and its sister cryptocurrencies. Some feel that it has no intrinsic value and is a joke. Others contend that you can’t invent a currency out of thin air.

On the other side of the coin (no pun intended) some have invested in venture capital funds that back cryptocurrencies.

There are currently a number of businesses already accepting Bitcoin to pay for services and products such as Whole Foods and Overstock.com. I have also found a car dealer locally that has the option on their website to purchase your new car using Bitcoin.

It is very hard to wrap our brains around this new technology. We are so used to paper and coin currencies and being able to actually hold it in your hand that when something new like this comes along it takes quite a bit to fully understand the complexities of how it works.

Digital currency has the power to affect everything from world economies to small business. Some proponents also believe that blockchain and digital currencies have the ability to do to the financial system what the internet did to the world of media.

Whatever your feeling is, for better or worse, I believe cryptocurrencies are here to stay.

Kathy Henderson is director of Economic Development for the Carbon Chamber and Economic Development.