What do you say when asked this question from a friend who has only heard its name mentioned a few times in the news and has no clue. I find myself lately taking the easy way out and suggesting google. I would prefer to give a clearer answer, but usually saying something leads to more questions and more confusion.
If someone could point me to a twitter type answer that would inform and twig their curiosity, i think it would be a better outcome.
The question was asked a long ago. Now I think your friend have enough knowledge about the bitcoin. From the last year bitcoin has been a hot topic for the main-stream media. So bitcoin is not a alien object anymore.
Bitcoin is a digital currency created by in 2009 Satoshi Nakamoto in 2009. It serve as a medium of exchange without relying on any 3rd party (financial institutions or governments).
New Bitcoins are created by users running a program that solves a difficult mathematical problems to confirm transactions between other users. The price of Bitcoin is determined by means of supply and demand in the market.
One of the problem is many people look at bitcoin as a investment only. Of-course it is a great investment but looking for the profit is the only reason of so much FUD, rumours about the bitcoin. when people ask about the 'trust in bitcoin', 'bitcoin will survive or not' type questions they are only asking about the price.