Is Bitcoin the currency of the future? Here's what you need to know

Bitcoin hit $2785 today. Glenn Beck explained what that means and why it matters on “The Glenn Beck Radio Program” today.

Australia had previously threatened to double tax Bitcoin but has since reversed their position, which is why the cryptocurrency is now soaring in the currency market.

Cryptocurrency is a digital blockchain currency. It is encrypted so that the generation of units of currency can be regulated and that transfer of funds can be verified. It operates independently of a central bank.

Blockchain, Glenn explained, takes information and breaks it into blocks, storing it in several different places. This encrypts the information so that it's impossible to digitally break into.

Bitcoins are generated over a twenty year period and digitally gathered by "miners."  When the two decades is up, the value of Bitcoin is expected to increase.

Glenn warned that people should only invest in this volatile currency if they can afford to lose all they invest. But if you have a fair amount saved for something unessential, this might be a fortuitous gamble.

Stu Burguiere pointed out that Bitcoin avoids Federal Reserve-created issues like inflation, which caused Glenn to note that that's likely the reason governments have not adopted it so far.

To see more from Glenn, visit his channel on TheBlaze and listen live to “The Glenn Beck Radio Program” with Glenn Beck, Pat Gray, Stu Burguiere and Jeffy Fisher weekdays 9 a.m.–noon ET on TheBlaze Radio Network.