![Bitcoin.jpg](https://steemitimages.com/DQmXAsNhh5TBNLT8KXhmgEZth9DUN2CAWo3QrSDiUko6yk4/Bitcoin.jpg)

How bitcoins work? 

Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who 'mine' them by lending computing power to verify other users' transactions. 

They receive bitcoins in exchange. The coins also can be bought and sold on exchanges with U.S. dollars and other currencies. 

How much is it worth? 

One bitcoin recently traded for $2600, according to Coinbase, a company that helps users exchange bitcoins. That makes it more valuable than an ounce of gold, which trades at less than $1,260. 

The value of bitcoins can swing sharply, though. A year ago, one was worth $620, which means that it's nearly quadrupled in the last 12 months. But its price doesn't always go up. 

Why are bitcoins popular? 

Bitcoins are basically lines of computer code that are digitally signed each time they travel from one owner to the next. Transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators and criminals. 

Is it really anonymous? 

Yes, to a point. Transactions and accounts can be traced, but the account owners aren't necessarily known. investigators might be able to track down the owners when bitcoins are converted to regular currency. 


How are bitcoins kept secure? 

The bitcoin network works by harnessing individuals' greed for the collective good. A network of tech-savvy users called miners keep the system honest by pouring their computing power into a blockchain, a global running tally of every bitcoin transaction. 

The blockchain prevents rogues from spending the same bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional bitcoin. As long as miners ..