What the heck is a "bitcoin"?
While many people couldn't tell you if they had multiple guesses what exactly a bitcoin is, the value of this virtual currency has actually surpassed the value of 20 national currencies.
The bitcoin, also known as BTC, is a “decentralized digital currency based on open-source, peer to peer internet protocol.” It was introduced in 2009 and created by Satoshi Nakamoto- How many bitcoins do you think that guy is worth now?
Though not intended as its original purpose, the bitcoin is in high demand thanks to various world events that have made people leery of government-issued currencies.
“Because of what's going on in Cyprus and Europe, people are trying to pull their money out of banks there,” Tony Gallippi, the CEO “BitPay.com told FoxNews.com.
Currently the monetary base of the bitcon is valued at over $800 million US dollars. Through a system of timestamps which are widely published for public consumption, transactions are recorded, and bitcoins trade virtual hands like any other form of currency.
Interestingly, the European Central Bank has accused bitcoins of being a type of Ponzi scheme. But considering the current financial situation in Europe and the fact that a majority of bitcoin investors are from Europe, it isn’t hard to see why the ECB and bitcoins would be natural enemies.
If your grandma had a hard time understanding how wi-fi works, the bitcoin may just melt her brain.