If a Bitcoin is really worth £20,000 as they said on the news this morning - how do you cash one in?
Where does the money come from?
You buy and sell it in a similar way to buying anything, the difference is that you are buying something virtual, i.e. something you cannot see.
I used an app called Coinbase to buy it, they just do a bank transfer into your 'GBP Wallet' which is effectively a virtual wallet as such in pounds sterling.
You can then buy one of the virtual currencies, I bought £50 of Litecoin which cost £52 including a £2 fee.
At the time a single litecoin cost £50 so I bought something like 0.99993 coins.
I then sold for £250 ish and they charged me £2 to sell meaning I made a profit of £196.
Once sold, it goes back into your GBP wallet.
The downside here is that you have to pay them 2 Euros to verify your bank account which they then refund.
Something I was not aware of is that they are based in Estonia so its an international transaction so the 2 Euro turned out to be nearly £11 including a fee, this is a one time charge to verify your UK bank account though.
I am still in profit for about £185 so will buy me some more Philips Hue stuff I don't need