Good info JB...thanks. I'd read about how it works awhile back. Your explanation makes it even clearer.From the Wall Street Journal:
Defining bitcoin can be tricky. To some, it is a commodity. To others, it is digital cash.
However, the most concrete definition of bitcoin is this: It is software, a program designed to allow people to exchange value directly with each other. It was created by someone calling himself Satoshi Nakamoto, unveiled in 2008 and launched the following year.
What makes bitcoin unique is that this piece of software is run across a network of linked but independent computers. In this way, no one party has control over the network. No central bank and no government can dictate the currency’s value.
Every single bitcoin transaction is recorded in a ledger that is visible to anybody, known as “the blockchain.” Bitcoin’s technology is trusted due to its ability to prevent counterfeits and hacking. The currency’s database has not been pierced once since it went live in January 2009.
Because “bitcoin” is nothing more than digits in a computer program, it has absolutely no intrinsic value. What determines the price is only what another person is willing to pay for it.