Bitcoin has captured broad public attention, now that it has surged to $1,200 per coin, which is by far an all-time high. The coins were valued around $13 apiece just under a year ago. Bitcoin is a virtual currency. You can't hold it in your hand, or carry it like cash. However, more and more transactions are occurring in the virtual realm, with banks exchanging dollars and every other kind of currency by virtual means. When you think about it, unless you still deal in cash, most of your transactions are virtual.
Bitcoin works exclusively in this virtual realm. It was introduced in 2009 as a "peer-to-peer" open-source virtual currency, which means that it's not controlled by any one entity, but rather by the users of the currency itself.
Bitcoins are created, mined, if you will, by users who install programs on their machines. These programs generate bitcoin that people can put into digital wallets. Wallets are just long strings of randomized characters, designed to be encrypted and virtually impossible to hack. Your string of characters can even be written down and carried in your wallet rather than saved online, however there are digital wallets online.
However, bitcoin is gaining mainstream acceptance. Online retailers are preparing to accept bitcoin transactions, banks are opening up to the virtual currency, and even Virgin Galactic has announced that it would accept bitcoin. Locally, bitcoins can be exchanged with retailers and other people. In some places, you can even order a pizza with the currency. New mobile apps allow you to scan QR codes at restaurants and retail stores.
