Bitcoin is a borderless digital currency that eliminates the need for a bank. Therefore, understanding this concept hinges on conceiving financial transactions without banks.

Cryptocurrencies are in the headlines every day and some say are powerful enough to take down the stock market as well as threaten the role of century-old banks and governments.

Turns out, demand for the digital coins is still pretty low though.

Less than 8 percent of Americans own cryptocurrencies, according to a new study by personal finance website Finder.com.

The site surveyed 2,000 adults in the United States in February.

The results show the hype around cryptocurrencies is not yet mirrored by reality, said Aswath Damodaran, who teaches finance and valuation at the New York University Stern School of Business.

"Bitcoin has taken over the public imagination," Damodaran said. "But it's a very small phenomenon."

He pointed out that the market capitalization of all cryptocurrencies (below $400 billion) is less than half the market cap of one company: Apple, which has a market capitalization of more than $900 billion.