The A,B,C of virtual currency Bitcoin

At a time when the world is awash with cheap paper currencies, the rapid appreciation of the borderless virtual currency, the so-called “Bitcoin”, has attracted a lot of media and public attention. Trading at less than five cents in 2010, the market value of one Bitcoin exceeded US$1,200 (Dh4,407) in November 2013. Currently, there are approximately 12 million Bitcoins in circulation, representing a market value of over $14 billion, well above Iceland’s nominal GDP recorded in 2012. The purpose of this note is to shed some light for starters (like myself) who are puzzled, and sometimes annoyed, for knowing almost nothing about it.