So what are Bitcoins? If you're like most people, you've probably bought something online. And chances are, you used PayPal, a credit card or some other means (like maybe a gift card or house credit). What most people don't do is pay for the transaction using Bitcoins. But that may be changing.

Those who are familiar with Bitcoin know that it's a highly sought-after form of tech-driven money. It is an open-source, peer-to-peer virtual currency that exists purely in digital form, which means there is no direct offline equivalent. That's not to say it doesn't have real cash value; as of this writing, it's roughly $78 USD. That can, however, fluctuate — like any other currency exchange. While Bitcoins operate under a MIT licensure, which gives them the right to be freely distributed, modified and redistributed, there is no overarching central authority that actually governs them. They are self-sustaining.

It was created in 2009 by a hacker dubbed Satoshi Nakamoto. It's unclear whether this person (or group) intended to make a whole new economy based on peer-to-peer networks and advanced cryptography, but that's just what happened. According to Bloomberg, there are 10,952,975 Bitcoins circulating today. Remember the $78 USD value? Go ahead and do the math. While not a whopping sum, especially in tech circles, it's still a pretty decent chunk of change flying around without supervision or government control.

For a more newbie-friendly explanation, check out this animated video covering what Bitcoins are and how they work.