With those virtual coins, from some internet stores or auctions you can simply buy a phone or a DVD. On some other websites you can make a poker bets with bitcoins. Organizations like Free Software Foundation or Electronic Frontier Foundation are accepting donations in those digital coins. Different online platforms are willing to buy bitcoins and pay in paper money and the exchange rates vary.

The start of all this is settled in 2009, by man with nickname Satoshi Nakamoto, who published complicated and understandable only for specialists article, how to be organized the whole system. On this project was working a whole team of open source developers. Some of them demand from the begining some part of their salary to be in bitcoins.

In our days there are already hundreds of websites, discussing the opportunities of the new money. There are lots of blogs about bitcoins, giving advices to the “miners”. There are real exchanges, discus studios, statistic services about bitcoins and so on.

This might be the most dangerous project, we have ever seen, because in some point this currency can bring down governments, to destabilize economy and to create uncontrollable global markets for stolen goods. If something goes wrong, bitcoins will fall down like avalanche, and will take lots of other stuff with it.

One of the first big miners is known as Molecular. Today his computer is on the balcony, closed in wooden box, because the cooling system of his powerfull and fast graphic card was so noisy, that it sound like a hurricane in his room. So now, his computer stays at the balcony, making money from electricity.

Molecular have started like a real amateur – he sends in letter some us dollar banknotes in Canada and buying with them his first bitcoins. His bank account was growing fast, until he becomes one of the most valued players, supporting the system of the digital currency. Molecular have never exchanged even a single one of his digital money for dollars or euro – part of his principles.

His acts were very smart, because rise of the price is significant – if in the middle of 2010 1 Bitcoin was around 20 or 30 cents, in the end of May 2011, it is almost 8 dollars. The people who have choosen to keep their Bitcoins, have increased their assets 20 times.

For example Molecular has done some job in projecting of a porn website, it only took him one day. For his work, he got 250 bitcoins – almost nothing by this time, but today they are thousands of dollars.

Bitcoins are quite complicated. They are locked, unique code, who circulates between connected in network computers. This code carries specifically math structure and information about previous transactions – it is still anonymous but the history of the previous transactions are now part of the code.

Their structure, ensures that bitcoins cannot be faked or copied. “Miners” in the network are checking constantly if everything is alright with the performed transfers. If there is some mathematical uncertainty, the transaction is not going to happen. By the way, to implement the inspection itself, a lot of cpu time and calculations are required, which also cost digital money.

One simple personal computer cannot “mine” bitcoins. High-performance computers are needed, real “mining galleries” – they can be assembled, bought  or rented. But making money is getting harder and harder, because more computers included in the system, less bitcoins are distributed for the finished work. Still, much more profitable to buy with paper money one Bitcoin, than to produce it with a computer work, if yet to be assembled the required hardware.

To able to exist the digital currency, it is necessery computers to work all the time. They receive tax for their work, which will constantly grow. Solution of the problem is deflation – every digital coin will increase its value. Evolution of the bitcoins is quite progressive. In our intense economy anything can happen.

Most interested in bitcoin’s deletion are the electronic payment systems, based on “classic” currencies(dollar, euro, yen). For example, Paypal have already closed the account of their client, who bought bitcoins with the same account.

After commodity money we were passing through standardized coinage. Coinage was widely adopted across Ionia and mainland Greece during the 6th century B.C., eventually leading to the Athenian Empire’s 5th century B.C., dominance of the region through their export of silver coinage, mined in southern Attica at Laurium and Thorikos. A major silver vein discovery at Laurium in 483 BC led to the huge expansion of the Athenian military fleet. Competing coinage standards at the time were maintained by Mytilene and Phokaia using coins of Electrum; Aegina used silver. It was the discovery of the touchstone which led the way for metal-based commodity money and coinage. Any soft metal can be tested for purity on a touchstone, allowing one to quickly calculate the total content of a particular metal in a lump. Gold is a soft metal, which is also hard to come by, dense, and storable. As a result, monetary gold spread very quickly from Asia Minor, where it first gained wide usage, to the entire world.

Right next standardized coinage are coming representative money. Representative money refers to money that consists of a token or certificate made of paper (legal tender). The use of the various types of money including representative money, tracks the course of money from the past to the present.

Token money may be called “representative money” in the sense that, say, a piece of paper might ‘represent’ or be a claim on a commodity also. Gold certificates or Silver certificates are a type of representative money which were used in the United States as currency until 1933.

Fiat money are next in historical plan. Fiat money refers to money that is not backed by reserves of another commodity. The money itself is given value by government fiat (Latin for “let it be done”) or decree, enforcing legal tender laws, previously known as “forced tender”, whereby debtors are legally relieved of the debt if they (offer to) pay it off in the government’s money. By law the refusal of “legal tender” money in favor of some other form of payment is illegal, and has at times in history (Rome under Diocletian, and post-revolutionary France during the collapse of the assignats) invoked the death penalty.
Governments through history have often switched to forms of fiat money in times of need such as war, sometimes by suspending the service they provided of exchanging their money for gold, and other times by simply printing the money that they needed. When governments produce money more rapidly than economic growth, the money supply overtakes economic value. Therefore, the excess money eventually dilutes the market value of all money issued. This is called inflation.

These days no one can live without credit money. Credit money often exists in conjunction with other money such as fiat money or commodity money, and from the user’s point of view is indistinguishable from it. Most of the western world’s money is credit money derived from national fiat money currencies.
In a modern economy, a bank will lend to borrowers in excess of the reserve it carries at any time, this is known as fractional reserve banking. In doing so, it increases the total money supply above that of the total amount of the fiat money in existence (also known as M0). While a bank will not have access to sufficient cash (fiat money) to meet all the obligations it has to depositors if they wish to withdraw the balance of their cheque accounts (credit money), the majority of transactions will occur using the credit money (cheques and electronic transfers).