JEFF Surcess's twin 12-year-old children don't have pocket money or bank accounts.

They have Bitcoin wallets.

They excitedly ask him from time to time to check their balance; and they occasionally convert some of it back into regular Australian dollars they can spend.

Mr Surcess is a virtual currency consultant and Bitcoin, the boom-crash-stabilise cryptocurrency that launched in 2008, is his area of expertise.

As director of software development company Data One, he was able to quickly grasp the new concept of a "peer-to-peer electronic cash system" that is not controlled by any government or organisation.

"Bitcoin doesn't act like currencies people are used to," he said. "It's a new concept, based on a revolutionary invention and it's a world first.

"It's decentralised. There's no central party that manages transactions; they simply go from wallet to wallet.

"It is also deflationary in its effect, when we are used to the Australian dollar and its inflationary effect as the cost of goods goes up.

"Over time with Bitcoin, the longer you hold it, the more it buys.

"You often hear about it in the media when the price goes up dramatically or it crashes. It is volatile because it's a free market and there is not a big pool of liquidity. I think there's only about eight billion Bitcoins worldwide.

"But the take-up is enormous. There are various wallet companies and one of the biggest (Block Chain) is providing 7000 new wallets a day."

But Bitcoin has its limits, and they are deliberate.

"An anonymous person (now known as Satoshi Nakamoto) designed Bitcoin using an elegant mathematical algorithm which dictates that the number of Bitcoins only increases over time by a certain rate.

"There will be a 21 million maximum number of coins - so it can't be corrupted."

Mr Surcess said new Bitcoin customers get an account on an exchange before buying Bitcoin at a price they're happy with.

Like other currencies, Bitcoin does fluctuate. One Bitcoin was worth about $650 Australian dollars recently.

Buyers who might have smaller amounts, like Mr Surcess' children, can still set up an account, as each Bitcoin is divisible into 100 million pieces (eight decimal places). So a typical Bitcoin account balance is rarely a round number.

"It expands the reach of trade and commerce beyond the one billion people on Earth who have banking facilities," he said.

"All you need is internet access. People all around the world can get involved in international trade and essentially be their own bank.

"Bitcoin is like cash on the internet and you can transfer any amount of Bitcoin instantly around the world for almost no fee."

Australian retailers are slowly adopting the currency. Search locations like coinmap.org to find retailers who accept Bitcoin.

LEARN MORE

Jeff Surcess will speak about Bitcoin at the next Maroochydore Chamber of Commerce breakfast at the Maroochy Surf Club on March 20. Phone 54435661 or go to www.maroochy.org to book.