Bitcoins: Widely known and widely misunderstood

by Rachel Baker on November 26, 2013

Here’s a good explanation of Bitcoins from the latimes.com.

You’ve probably heard of bitcoins. They’re a virtual currency, meaning they exist nowhere but on a network of ledgered accounts owned by people all over the world. The system is decentralized, so it’s not under the control of any government or, arguably, any single authority at all. Bitcoin values are set not by a government authority but partially through a complicated mathematical algorithm and partially by what people think they should be worth at any moment.

As a result, their value has been highly variable — over just the last month the price of a single bitcoin has been quoted by Mt. Gox, a leading exchange agent, as low as $190 and as high as $900.

http://www.latimes.com/business/la-fi-hiltzik-20131124,0,1228879.column

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