Still Not Sure What Bitcoin Is Or Why It Surged Past $11,000? This Explainer Breaks It Down to Basics

The price of a single bitcoin has pierced the $11,000 level and some experts say it could rise further. The world's most popular virtual currency allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.It has a fuzzy history, having been used by hackers to demand ransom and for the purchase of illegal drugs online. But recently it's become more popular with a different crowd: speculative investors.As its price keeps rising, here's a brief look at bitcoin.HOW BITCOINS WORKBitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who "mine" them by lending computing power to verify other users' transactions. They receive bitcoins in exchange. The coins also can be bought and sold on exchanges with U.S. dollars and other currencies.HOW MUCH IS IT WORTH?Bitcoin was trading over $11,000 Wednesday before dipping to around $9,800 later in the day, according to coindesk, a website that monitors the price. That's about a tenfold increase from the start of the year, when it was worth under $1,000.The value of bitcoins can swing sharply, though. A bitcoin's value plunged by 22 percent against the dollar in just three days earlier this month.WHY BITCOINS ARE POPULARBitcoins are basically lines of computer code that are digitally signed each time they travel from one owner to the next. Transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators -- and criminals.  Continue reading...