Why are people investing in bitcoin today, when it's trading around $1,000 (at this writing), even though it's been around since 2008, when it cost less than 10 cents?

The new, rapidly growing popularity of investing in bitcoin can be explained by the actions of one group: The U.S. Federal Reserve.

The Fed continues pumping $85 billion a month into the U.S economy, further ravaging the dollar's value. This prompted Warren Buffett's warning to investors: "Run from paper money."

The world's most famous investor recently delivered his blunt advice to CNBC, saying investors should fear the dollar because it will be "worth less and less over time."

"Paper money has a lousy future," Buffett said.

Now thousands of Main Street Americans are dumping their dollars – and have turned to buying and investing in bitcoin.

In fact, as the U.S. dollar reaches a startling two-year low – its weakest since November 2011 – and with consumer confidence dropping like a rock – bitcoin is becoming a powerful force on currency exchanges around the world.

"What we're witnessing," said Money Morning Defense & Tech Specialist Michael A. Robinson, "is a global rebellion against the Fed, against all central banks. A harsh dose of medicine to many overblown power structures."

Editor's Note: Have you seen this unstoppable phenomenon?



Investing in Bitcoin: The World's "Renegade Currency"

This radical new currency bears a striking resemblance to a type of money first created by American icons Thomas Edison and Henry Ford at the turn of the 20th century.

The U.S. Department of Justice calls it a "renegade currency," because while it protects Americans from a decaying dollar, it also threatens central banks like the Fed which control fiat currencies around the world.

"Ordinary Americans love this currency, yet politicians are terrified of it," said Robinson, former Board Member of a major Silicon Valley Venture Capital Fund who spent the last two years analyzing the benefits of buying and investing in bitcoin.

"It's a stateless currency," Robinson added. "There's no central bank, no central computer, no center to attack. Governments fear this money could hasten the end to paper money- and start a powerful revolution."

Some analysts believe the revolution has already begun. 36 cities across 20 states already allow citizens to pay for everything from water bills to parking tickets with bitcoin.

And according to the latest figures, nearly 700,000 American businesses are now turning to bitcoin, including Wal-Mart, CVS, Lowes and Nike.

International acceptance is surging too, and economists predict bitcoin could usher in a new international monetary system.

Editor's Note: Obama and Bernanke are powerless to stop bitcoin from derailing the dollar. Go here to see why.

Investing in Bitcoin: How this Radical New Currency Works

Unfortunately, Robinson says the mainstream media is still keeping the American people in the dark about how bitcoin works.

Robinson, on the other hand, wants to give you all the details. He's interviewed dozens of CEOs, investment funds and other major players involved with investing in bitcoin. He talked extensively to his network of contacts in Silicon Valley to get a read on where this currency is heading.

He's now made all that research available to average Americans. And what he reveals may shock people; it completely redefines the way we think about money.

His research also serves as a wake-up call regarding the systematic problems facing our government controlled money supply- and how bitcoin could actually free citizens from being subjected to the whims of central banks around the world.

"Something like this has never happened before in history," Robinson said. "Since 2009 we've had ungodly amounts of money printing, quantitative easing, and zero percent interest rates as far as the eyes can see."

"Remarkably, this new currency makes all those problems unnecessary and even obsolete."

And that's why some of the world's smartest investors are investing in bitcoin today.