JUNO DEFINITIONS - B

 

Bid-ask spread: The amount by which the asking price exceeds the bid price for an asset in the market.

 

Bitcoin: A virtual currency invented by a group of anonymous software developers led by the fictional ‘Satoshi Nakamoto’ in 2009. They agreed rules and a system of computer-powered cryptography that meant transactions were recorded identically on ‘ledgers’ on a network of computers.

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Bitcoin mining: ‘Miners’ earn Bitcoin by running the servers needed to do the complicated calculations for Bitcoin transactions on the blockchain. Bitcoin’s creators designed the system to halve the number of Bitcoins that could be mined every four years, which limits the number of Bitcoin to just under 21 million.

 

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Blockchain: How computers create the digital ledger needed to record the encrypted transactions using Bitcoin and other virtual currencies. It’s a system of ‘blocks’ of computer code that identify transactions and their owners.

 

Bonds: A bond is a fixed-income investment in which an investor loans money to a body (typically councils or the government) for over a timeframe for an interest rate.

 

Bubble: A surge in market rates of an asset type (not justified by its underlying value), followed by a sharp decrease in prices (when the bubble is said to ‘burst’).

 

Buyback: Share buybacks are when a business repurchases a portion of its own outstanding shares. This reduces the number of shares available and increases earnings per share. The company pays the current market value per share, on the exchange or privately, to remove them from public or private ownership. This, to some extent, consolidates ownership.

 

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