Guide: What is Bitcoin and how does Bitcoin work?
Today is the tenth anniversary of the virtual currency Bitcoin. But on its birthday it could be worth less by the end of year than it was on its previous birthday - for only the second time since it arrived in the virtual wallet. In late October 2017, bitcoin was worth just under £5000 - now it's worth just a little more. And there are still a couple of months of trading to go. But what is Bitcoin and how does it all work? What is Bitcoin? Bitcoin, often described as a cryptocurrency, a virtual currency or a digital currency - is a type of money that is completely virtual. It's like an online version of cash. You can use it to buy products and services, but not many shops accept Bitcoin yet and some countries have banned it altogether. The physical Bitcoins you see in photos are a novelty. They would be worthless without the private codes printed inside them. How does Bitcoin work? Each Bitcoin is basically a computer file which is stored in a 'd