Bitcoin is a decentralized digital currency. It is free of any centralized issuer and uses a decentralized distributed database to manage itself. I find Bitcoin pretty interesting because of the anonymity involved in fund ownership and transfers.
Bitcoin can be saved on a PC in a wallet and if you were wondering how big this crazy idea is, there are around 6 million Bitcoin currencies in the world right now. All you need to send or receive a Bitcoin is a bitcoin address and there is no transfer fees involved from a central authority because of the decentralized nature.
The FSF has embraced Bitcoin for donations and this will help Bitcoin achieve more value in a world of government regulated currencies. Their announcement says,
Our setup right now is very basic, so we are providing just a single address at which to direct contributions: “1PC9aZC4hNX2rmmrt7uHTfYAS3hRbph4UN”. Because of the way the system works, contributions to this address will not be fully anonymous.
If you’d like us to know who the contribution came from, and be able to acknowledge receipt of your donation, then please email firstname.lastname@example.org with your name and address, and contribution info.
The Bitcoin economy is worth 22 million USD and this is pretty small as compared to the well-established currency system we have otherwise. But the fact that people see it as a freedom from the government regulated currencies can pose a threat to it as it grows. Right now, the project is just out of its incubator and only time will tell where it goes.
Visit the Bitcoin project here.