3
DEC 2013
The idea of a global cyber-currency is taking hold at least in some circles. Bitcoins, which is a digital fiat currency, has increased in value. On some exchanges the value of a single digital bitcoin currency has increased to over a $1,000.
So what is a bitcoin? According to the BBC World news , Bitcoin is a new kind of currency that ican be thought of as virtual tokens rather than physical coins or note. Like all currencies its value is determined by how much people are willing to exchange it for.
The bitcoin market is composed of miners, traders, and users of bitcoin. Like gold or commodity based currencies, miners discover new bitcoin. Bitcoin is mined using complex computer and mathematical algorithms. Like supplies of gold, the complexity of the mining process keeps the supply of bitcoin stable.
Currently there are about 11 million bitcoins in existence. Bitcoin transactions are anonymous and untracable. Sites like,spendbitcoin , provide lists of vendors that accept bitcoin. The vendors include internet services, manufacturing, and legal services.