What the Heck Is a Bitcoin Anyway? And how can my business accept payments with the digital currency?

Q: My customers are asking to pay with Bitcoin. How does it work?

A: It's easy. On the surface, Bitcoin--a peer-to-peer payment system and digital currency not tied to any government--appears to be a financial breath of fresh air for small businesses. There are no annoying credit card fees, bank transfers or delays in receiving payments.

Anyone can send Bitcoins from a mobile phone, desktop computer or SMS to anyone else within seconds, for free. No government authority can seize those funds, and no bank can prevent them from being sent.