Introduced in 2009, Bitcoin is an online, digital currency which doesn’t have a central bank or ownership and is often referred to as a peer-to-peer payment system. Bitcoins are generated through a process known as "mining." This involves using specific software to solve maths problems. When a maths problem is solved, the "miner" is rewarded with a Bitcoin. These Bitcoins can then be exchanged for goods and services. Although the number of companies who accept Bitcoins is currently limited, as the currency becomes more well known the number is growing. Bitcoins can also be bought using other currencies. Bitcoin is also a "crypto-currency" which means it uses cryptography to drive the production of Bitcoins and Bitcoin transactions. This makes the currency extremely secure. The "block chain," which is effectively a public book of accounts, is used to check that genuine Bitcoins are being exchanged in all transactions. Bitcoin benefits from no limits of exchange as users can perform instant transactions at an
The Unidad de Fomento (UF) is a Unit of Account belonging to Chile. It does not have any coins or banknotes. Its value is related to the Chilean Peso and today (2014), the exchange rate fluctuates according to the rate of inflation. The Unidad de Fomento is used to price things like mortgages, loans, taxes, rent etc. Things priced in Unidad de Fomento will remain at a fixed Unidad de Fomento price but the exchange rate to Pesos will fluctuate. For example, if the rent of a house is 20UF a month, the actual amount paid in Pesos each month will vary according to the UF exchange rate from month to month.