OK. So the previously assumed premier exchange, Mt Gox is in trouble. You can trade internally, but the chance of not being able to withdraw coins and liquidation of the exchange are high.
Bitcoin prices outside of Mt Gox appear to be relatively unaffected.
I thought the whole idea was nonsense until I noticed people using bitcoins for international transactions to avoid gouging by Western Union and their ilk. But they are not actually holding the coins - just using them as a medium of exchange.
The mining of them is interesting. Supply economics suggest that places with cheap talent in IT, and easy opportunities to steal electricity will increase their share of production - i.e. China and India. And then the affect of inter-exchange with copy-cat currencies opens up supply indefinitely.
I can't work out whether these things are here to stay or not....!!!
