Bitcoins take a bashing

Help

The bitcoin, a virtual internet-based currency, has shot up in recent weeks.

But on Wednesday it took a huge nosedive from its all-time-high of $265 to as low as $105, before it staged a slight recovery to around $120 on Thursday.

So has the bubble burst, and if so does bitcoin have a future?

Jeremy Cook, chief economist at World First, explains what bitcoins are and how they are valued.

Broadcast on BBC Radio 4's Today programme on Friday 12 April 2013.

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.