Bitcoins take a bashing

The bitcoin, a virtual internet-based currency, has shot up in recent weeks.

But on Wednesday it took a huge nosedive from its all-time-high of $265 to as low as $105, before it staged a slight recovery to around $120 on Thursday.

So has the bubble burst, and if so does bitcoin have a future?

Jeremy Cook, chief economist at World First, explains what bitcoins are and how they are valued.

Broadcast on BBC Radio 4's Today programme on Friday 12 April 2013.