Bitcoins gain their value simply by the fact people are prepared to accept them as payment for services and goods. This sounds weak but this is not entirely dissimilar in nature to the major Fiat currencies such as the Dollar, Euro and Sterling. The only reason we're prepared to accept our wage in dollars is the fact that we know that shops and service providers across the United States (and other countries) are prepared to let us spend it.

You can amass additional Bitcoins just like you can earn real-life currency--by offering services or goods and accepting Bitcoins as payment. Doing so will increase the integrity of the Bitcoin system--something which, as a potentially Bitcoin wealthy person, it's in your interest to do.

Virtual currencies aren't a new idea, of course. Those with long memories will remember , denizens of the dot.com boom that fell flat on their faces as the new century got underway. Additionally, some online games offer their own currency system that have virtual exchange rates for real money. However, Bitcoin differs because there's no central bank or other kind of controlling interest. It's entirely decentralized.

Bitcoins are transferred between individuals or businesses by specifying their Bitcoin address. Transactions travel through the peer-to-peer network created by those who are running the Bitcoin client software.

There's no single point of weakness. Nobody can stop the Bitcoin system or censor it, short of turning off the entire Internet. If Wikileaks had requested Bitcoins then they would have received their donations without a second thought.