Bitcoin is a concept created by an anonymous hacker about four years ago. It is a purely digital currency. The thing that's so wonderful about it is that there is no government authority over the currency, leaving all the responsibility up to the traders. Like all currencies, Bitcoin must be backed up by something, and it is. Coins are created through "mining". It's like mining for gold, instead you are mining for "blocks". A block is created when a certain mathematical question is solved. The payout for solving a block is automatically adjusted, so that in the first four years, 10,500,000 Bitcoins are created. This amount is halved every four years, so that the total Bitcoins in existence won't exceed 21,000,000.
The recently recent news about the Bitcoins is that 1 Bitcoin now translates to about 40 USD, after a Bitcoin market boost. Many find this boost outrageous, but that's the way it is. The Bitcoin currency is flourishing, and personally, I believe it's the way of the future.
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