What is bitcoin? An idiot’s guide to the virtual currency

Thanks to Metro for the post…Now I get it! 😉

Metro

Once exclusively the domain of tech-savvy libertarians, virtual currency bitcoin has shot to prominence after a massive rise in value and the financial crisis in Cyprus. We explain what bitcoin is, how it works and whether it represents a glimpse into the future of the world economy.

What is bitcoin?

Bitcoin is a decentralised virtual currency, meaning neither does it exist in the physical world, nor does it have a central bank such as the Federal Reserve or the Bank of England. There are also a finite number of bitcoins in the world, with a limit of 21million bitcoins set to be reached by 2014.

Why all the fuss now?

Bitcoin was introduced in 2009 by a mysterious programmer known only as Satoshi Nakamoto, which is thought to be a pseudonym, and who has never given an interview. Previously the domain of technology-friendly libertarians, bitcoin has shot to mainstream financial…

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