The Bitcoin â€" the first decentralized, peer-to-peer digital currency â€" was introduced on the web in 2009, but interest is bubbling up once again.
Building on the idea that money is essentially a medium for translating value, the Bitcoin uses cryptography (or encrypting digital information to transmit something securely) for its creation and transactions, rather than a central authority. To learn more about how Bitcoins are created and acquired, we've included a handy explainer video from WeUseCoins.com below.
Bitcoins, while often used for games and even tied to illicit activities every now and then, have been adopted by reputable vendors in addition to traditional forms of payment.
You can even find them implemented in real-life settings. In 2011, a Meze Grill location in midtown New York City accepted Bitcoins for a short time. Across the East River in the trendy neighborhood of DUMBO, Brooklyn, a creperie called O'Crepe's sells organic creations in exchange for Bitcoins. In San Francisco, you can buy a variety of treats with your Bitcoins at Cups and Cakes Bakery. And soon, Cyprus will set up the world's first Bitcoin ATM. There's even a man in Alberta, Canada, trying to sell his house for Bitcoins.
At the time of this post, one Bitcoin is roughly equivalent to $94 USD, but like all currency, the Bitcoin's value is constantly fluctuating. Nevertheless, the current exchange rate is a major increase from the $30 USD exchange rate in late February. Within a little more than a month, the Bitcoin's value has increased by more than 300%.
The bottom line: If you own Bitcoins, you've got something going for you. But where should you spend your "crypto-currency?"
We've rounded up eight online places you probably didn't know accepted Bitcoin payments. Get a domain name, score some sweet handmade items on Etsy and even donate to a good cause with your web wallet.
Do you use your Bitcoins anywhere else? Share your recommended vendors in the comments.
Homepage image courtesy of Flickr; Zach Copley
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