Make way for the Bitcoin

For those of you that have no idea what a Bitcoin is, a Bitcoin is a digital cryptocurrency created in 2009 by a Japanese man named Satoshi Nakamoto. At present there have been 11 million produced with an approximate value of £78/coin (23/5/13). At their peak, they reached an impressive £176/coin.

It is pretty much the same as any other currency 'except that it isn’t controlled by any country; you can’t hold one; and you can’t buy many things with it right now.' However, despite their recent slump, more and more companies are beginning to accept them.

"So how is this currency produced?", I hear you all ask. Well, there is a finite number and they have to been unlocked in a process called mining. 'You can unlock more of them if you discover a hidden series of letters and numbers that matches up with the Bitcoin security keys specified by Nakamoto.'  By 2140 there will be a total of 21 million and this will be total number produced.

The down side is that the Bitcoin is not easily traceable. 'Holders can trade them or use them to purchase things online anonymously. As a result, Bitcoin has been used on Internet black markets to buy illicit items including drugs [...] and there’s a thriving online market where drugs are traded online.'

While this new currency certainly has its downfalls, it's certainly an interesting future prospect. It begs the questions whether euros, pounds and dollars will soon be something of the past.

What are your views of the Bitcoin? Do you think it will be the universal currency? Click on the image below to read more.

Source: http://www.moneyweb.co.za/moneyweb-101-for-beginners/bitcoins-simplified