The Bitcoin Boozer: East London pub becomes first in Britain to accept virtual currency as payment

Pembury Tavern in Hackney, east London, now accepting digital currency

Since 2008 Bitcoins have become an increasingly popular payment option

Bought and sold on a peer-to-peer network independent of central control

Drinkers can now buy drinks with virtual currency in Britain's first Bitcoin pub.



The Pembury Tavern in Hackney, east London is now accepting the digital payment, as well as its three sister pubs in Cambridge, Norwich and Peterborough.



Bitcoin is a form of tender which can be bought and sold on a peer-to-peer network independent of any central control.

The Pembury Tavern in Hackney, east London is now accepting the digital currency Bitcoins, as well as its three sister pubs in Cambridge, Norwich and Peterborough

Stephen Early, who founded the pub group, purchased some of the currency in 2011, before doing the 'equivalent of putting them in a drawer and forgetting about them', the Guardian reports.



Soon however, the coins were worth 20 times what he had paid for them and he decided to see if he could entice in other like minded Bitcoin holders into his hostelry.

Bitcoins have become an increasingly popular digital currency since they emerged in 2008.

Bitcoins have become an increasingly popular digital currency since they emerged in 2008. They are bought and sold on a peer-to-peer network independent of any central control

They are bought and sold on a peer-to-peer network independent of any central control.

While Bitcoins were first introduced and were initially unknown to everyone but hackers and the computer-savvy, they soon caught the eye of investors.

BITCOINS: WHAT YOU NEED TO KNOW

The Bitcoin operates as a two way currency which can be exchanged for dollars and vice versa. The notion behind it is to facilitate cheap, anonymous transactions policed by its community of users and is built around trust rather than relying on institutions like governments or banks. Bitcoin's status as a digital currency is debatable, it is entirely a digital product but is not regulated and it has a limit of 21million, which is predicted to last until 2140.

The finite nature of Bitcoins means it performs more like a commodity, such as gold. Bitcoin first emerged in 2008 and launched as a network in 2009. It was created by an obscure hacker whose identity is a mystery but is known as Satoshi Nakamoto, which is thought to be a pseudonym for the person or group who created it. Each Bitcoin is a piece of computer code that has been generated through very slow computer processing, also known as 'mining'. Users choose a virtual wallet from one of the various providers which enables them to receive, give and trade coins from other users. Bitcoin's can be bought from specialist online currency exchanges and online marketplaces such as ebay.

Users can send money directly from their computers to others on the other side of the world, and coins can be used to buy real goods, swapped for cash on exchanges or used for speculation.

Each Bitcoin is a piece of computer code that has been generated through very slow computer processing, also known as 'mining'.

Users choose a virtual wallet from one of the various providers which enables them to receive, give and trade coins from other users.

They can be bought from specialist online currency exchanges and online marketplaces such as ebay.



Mr Early, a former computer scientist, created and installed a Bitcoin payment option at his pubs and registered it on a database of Bitcoin retailers.



Those wanting to pay via Bitcoin at his pubs can do so quickly and effectively.



Staff press two buttons on a till for it to reveal a QR code. The customer uses their Bitcoin wallet app on their phone or computer and takes a picture of the screen to confirm the payment.



With one more push of the button from the bar staff the process is complete.



Mr Early said he has already had about £800 worth of transaction from Bitcoin users, and though he admits there is a certain novelty value, he said: 'It's more than I expected it to be.

'I really didn't expect that wave of enthusiasm and people coming in to try it out.'



The Pembury Tavern is the first UK pub to go Bitcoin-friendly, but other high profile businesses and purchases have been made with the currency.















