Bitcoin, which calls itself 'the world's first decentralized digital currency', is either a great way to avoid the debilitating effect of national governments debauching their currencies through quantitive easing and inflation - or it's a Ponzi scheme.
The tricky thing about Bitcoin is that no one knows who started it. The official initiator of the currency is Satoshi Nakamoto - a pseudonym. The scheme has been linked to three guys who have all denied any connection.
The value of the currency has soared. A Bitcoin is currently worth $40 making it an attractive investment as well as a means of exchange.
There are about 10 million Bitcoins in circulation worth $400 million. The currency is expanded at a set rate - 25 new Bitcoins are generated every ten minutes.
The currency is exchanged on-line on a peer-to-peer basis. It is claimed that 1000 merchants accept the currency.
Source:
http://www.electronicsweekly.com/Articles/2013/03/08/55720/worlds-first-decentralised-digital-currency.htm
