According to Robert Shiller, speaking at Davos, Bitcoin is a perfect example of a bubble - story here. Shiller sees Bitcoin as a backwards step in the evolution of money. George Selgin, a free banker, takes an opposing view - click here. Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.