Bitcoins are created, or mined, when computers complete a complicated mathematical problem. Many individuals have pooled their computer power to ensure this mathematical work is completed more quickly.
The BBC has reported that the Bitcoin virtual currency lost half its value on Wednesday because of a panic sell-off.
From a high of $260 (£169) for each Bitcoin, the value dropped to about $130 (£84) in just six hours. The selling frenzy began as Bitcoin's main exchange, MTGox, struggled to keep up with the volume of trade in the virtual currency. MTGox said it was working hard to improve the exchange to avoid future trading problems.
Visual.ly has a video explainer on the Bitcoin issue.