Bitcoins, what are they, and where are they going?

BIT COINS:

 

Bitcoins, what are they. Bitcoins are virtual currency "mined" from computer transactions, could one day challenge the hegemony of nation-issued money and create a truly viable decentralized, anonymous currency. Along the way, though, supporters must deal with challenges of building a new exchange system-and the inevitable winners and losers creates. According to the website " Bitcoin Fever Catching On," Bitcoin , has been gaining popularity globally this year, also catching the attention'a of the youth in India. Many college students and young professionals here are seeking to buy bitcoins, because they see the currency as the future, and they hope to make big money  off of them.

Here is a image of what the Bitcoin looks like, front and back. "It's a good investment option compared to a [traditional] currency because a limited supply," says Jinson Samuel, a 30-year-old website developer in Chennai, who recently started buying bitcoins. Unlike a traditional currency such as the rupee, which has a physical presence in the form of a note or coin, Bitcoin is a virtual currency which exists only online. The currency is "created" when computers solve complex  mathematical problems. Or, people can buy bitcoins from others who already own them.

More and more Indians  have been downloading the software needed to "mine" this currency, according to some data available through the end of  September, but creating a bitcoin with an ordinary home computer can take weeks or months.

There isn't any conclusive data on how many bitcoins are held by Indians, but enthusiasts say the number are growing.

The Reserve Bank of India, which prints rupees, says it is "closely watching growth of bitcoins but is not currently regulating the currency, according to a spokeswoman. Bitcoins got a boost last month, when lawmakers in the U.S. called it a "legitimate" financial service. Some countries such as the U.S., China and Japan now have electronic- exchange-like a stock exchange-where people can  buy or sell bitcoins. Only a small number of the electronic coins are created every day and as more people want to buy this currency, its value has been surging. The bitcoin was last changing hands at $927.17 on Japan-based  Mt. Gox, one of the most active bitcoin exchanges, 6,000% higher than at the start of the year.

Las Vegas- In highly insulated world of Bitcoin devotees, a small clutch of early adopters are treated like rock stars. Shortly after his panel on investment opportunities, former child star Brock Pierce {The Mighty Ducks} was  engulfed by a throng of admires. He wasn't surrounded for his acting chops but for making a small fortune investing in Mastercoin Foundation, which lets people create their own crypto currency using Bitcoin computing protocol. "Next year will be the year of Bitcoic," says Pierce, managing director of Clearstone Global Gaming Fund and an advocate of  virtual currency since the late 1990's.

In this video it will show you everything you need to know about bit coins. Also, If you want a bit coin wallet it is free. Bit coin verifies transactions with the same state of art encryption that is used in military and government applications-See more at http://www.weusecoins.com/en/#sthash.LZ2TPPcm.dpuf

Bit coin is open source, nobody owns it the most popular client maintained by a community of open-source developers. If you use the Bit coin network, it will be free, except for a small fee you will pay to speed up your transactions.