WHAT ARE BITCOINS?

The following CNBC article states, "With fears spreading that even insured deposits might not be safe in similar nations hit by banking crises, those looking for a haven to store their wealth have fled to the complicated world of digital cash."

http://m.cnbc.com//id/100597242

As alarm continues to spread thought Cyprus as Banks closely monitor withdrawals, Texas Gov. Rick Perry says Texas wants its gold back.

http://mobile.wnd.com/2013/03/why-texas-wants-its-gold-back-from-the-feds/

Have you even heard of the word "bitcoin?"  The word came into existence in 2009.  Five years later we are beginning to learn of the meaning and the ramification.  With the  austerity measures in Cyprus with Banks taking control of public monies, the emergence of talk about BITCOINS should be peaking our interest if not bringing a measure of alarm.  

Texas, in the words of Gov. Rick Perry, wants to demand that the gold bouillon that rightfully belongs to that state, be returned to the governance of Texas.  Why such a drastic measure?  Could this have anything to do with the outcry to "Investigate the Federal Reserve?"  Could it be that the gold standard that has made the US  monetary giant be in jeopardy?  The facts are out there.  We must be the judge.  

So what are BITCOINS, exactly?

http://bitcoin.org/en/

 In a nutshell, this is how it works:

"Abstract. A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they'll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone."
Quoted from Satoshi Nakamoto satoshin@gmx.com www.bitcoin.org

For a more in depth look at the Bitcoin system, it is detailed in the PDF document below:

BITCOIN: A Peer-To-Peer Electronic Cash System  (PDF VERSION)