Elon Musk has told users of an online social media app that he thinks the virtual currency, Bitcoin, is a "good thing."

 

When the richest person in the world gives his support to a virtual currency you know it's big business.

Elon Musk has told users of an online social media app that he thinks the virtual currency, Bitcoin, is a "good thing."

His comments resulted in the value of Bitcoin rising significantly.

So much so, that a singular Bitcoin went from being worth £3,600 in March last year to more than £27,000 now.

As talk of the currency has gone global, the Bank of Singapore has suggested that the 12-year-old currency could replace gold as its store of value.

However, in October, the head of the Bank of England, Andrew Bailey, warned about the unpredictability of Bitcoin, saying it makes him, "very nervous".

With all this talk you're probably wondering - what is Bitcoin and how does it all work?

Here's everything you need to know.