What Is Bitcoin?

[Cincinnatus]

Others on here who are more technically savvy than am I may already be aware of this virtual online currency of which I knew nothing until now. In any case here is a very detailed, somewhat longish, article on what bitcoins are, how they are used, and how to obtain them.

Bitcoin is striving to be a global currency of sorts—one that's not backed by any government or institution. Bitcoins aren't cash, technically. They're an entirely virtual currency. Users exchange online credits for goods and services from select retailers, contractors and online trading houses.

The article is very informative and interesting. Bitcoins have developed as a result of people losing trust in normal forms of currency and an awareness that Cyprus can happen anywhere.

One line for the article which amused me was: Because they're virtual, bitcoins aren't backed by any real world commodity, such as gold or a central bank. Not backed by anything? You mean like the American dollar?

[Bigun]

Not backed by anything? You mean like the American dollar?

The U.S. dollar is backed by the full faith and credit of the United States for whatever that's worth these days.

[ABX]

Bitcoins are more imaginary than any fiat currency they complain about. In reality, they are little more than gift certificates to trade among the circle of those who accept bitcoins. You still need real dollars to purchase bitcoins. At least if the dollar completely collapses, it has value as paper. Bitcoins don't even have that.

[Atomic Cow]

Bincoin is used to conduct a lot of illegal activities because it can be very hard to trace.

Not to say that everyone who uses Bitcoin are criminals, most are not, but it is one of those technology areas where the law hasn't caught up.