Ofcourse, the word “mysterious” is not very applicable to Bitcoin since this techhas been known at least since 2009. Bitcoinis a virtual currency, or cryptocurrency, as often said, that allows tostore money in a fully digital form and quickly transfer it across the world.The main advantage here is the speed. If using a bank or some payment systemlike Western Union allows to transfer money in several days, a Bitcoin walletwould let any user sendmoney anywhere in just hours, usually 1-2 hours. There are even ATMs to depositand withdraw bitcoins.
How Bitcoin works is a bit complicated, it has something to dowith the technology called Blockchain. This chain is actually a database thatstores all the Bitcoin transactions that have ever made. It’s worth noting thatwhen Bitcoin is spelled with an uppercase “B”, the underlying protocol and technologyis meant, while a lower case “b” means the currency itself (like dollars).
However,regular users don’t need to delve so deeply under the hood. If you want to workwith this cryptocurrency, all you need is to install a software wallet on yourPC or create an online wallet on a website (like coinbase.com), and you caninstantly send and receive money. Creating a free Bitcoin wallet is very easy for any user. You can also payonline for goods with your bitcoins as more and more shops accept them.
Bitcoinis a real currency, and as such, it has exchange rates for any other (fiat)currency out there. For example, one bitcoin costs about 450 USD currently. However, it’s worthremembering that the Bitcoin rate is very volatile and can change quickly. Forexample, in 2013 the dollar/bitcoinrate was about $1200, while now it’s only $450. The same is true with regard tothe bitcoin to EUR rate etc.