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Bitcoin Basics: What it Is and How it Works (Motiongraphic)

Before you can make up your mind on investment opportunities or the potential to accept bitcoins for online payments, you need to understand just what this new currency is and how it works. While it may seem like this digital-only currency sprung out of nowhere a few months ago, Bitcoin was originally developed in 2008.

In a nutshell, Bitcoin is a decentralized, anonymous, digital-only currency. When first introduced, you could buy over 1,000 bitcoins for $1. The value has skyrocketed since then, and one Bitcoin is now worth just over $100 (click here for a Bitcoin currency convertor). 
Related: A Look at 'Bitcoin' Currency 

For a primer on how bitcoins work, check out the motiongraphic from eBay Deals.

Source for motiongraphic: wiki maintained by the Bitcoin community 
 

Kathleen Davis is an associate editor at Entrepreneur.com.

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