What Is Bitcoin?

Are we at the threshold of a new currency era? Bitcoin has exploded in popularity in recent months, leaving analysts conflicted as to its value. Is it real money? Should it be regulated? Will it threaten the dollar?

Bitcoin’s value has increased remarkably in the wake of the events in Cyprus. In a world where governments have indicated their willingness to seize euro-denominated assets, many are looking to alternative stores of value that government can’t touch.

But what exactly is a Bitcoin? In this Daily Reckoning video, we give you a brief tutorial about the red-hot digital currency and tell you why some are heralding it as the future of currency, free from central bank manipulation, inflation and government capital controls.