What is Bitcoin?: Pop star Katy Perry asks billionaire Warren Buffett

Virtual currency bitcoin is soaring not only on major exchanges in the world but on celebrity conversation table.

The pop music superstar Katy Perry posted a photo of her for 68 million Instagram followers of her face to face meeting with Warren Buffett, during which she asked for his views on cryptocurrency.

nbd asking Warren Buffet his thoughts on cryptocurrency @ Berkshire Hathaway https://t.co/erKvhd6WRj

— KATY PERRY (@katyperry) November 29, 2017

Buffett, one of the world's richest men, is known for making the investment in value-producing assets. The post did not reveal the content of the conversation between them. However, Buffet has expressed his thoughts earlier on bitcoins.

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"You can't value bitcoin because it's not a value-producing asset. It is a real bubble," Buffett had told a gathering of business students in his hometown of Omaha, Nebraska, in October.

Perry, a pop singer, was in town for her North American tour. So far, her post on Instagram has more than 111,000 likes. Bitcoin surged past $11,000 on Wednesday.

What is Bitcoin?

It is a virtual currency, whose operation is not controlled by a central bank. People buy and sell goods on the internet using bitcoins. The founder of bitcoin is Satoshi Nakamoto, who is an unknown hacker. It is created by computers that have a capability of solving complex math calculations or problems.

Some argue that bitcoins will revolutionize how we use the money. Others claim that it is a hoax.

Earlier, the currency was used primarily by hackers and criminals. Now legitimate companies are joining the league. Wordpress and Reddit accept bitcoin.

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It has increased more than 10-fold in value so far this year, posting the largest gain of all asset classes, amid increased institutional demand for crypto-currencies as financial and mainstream use.

According to industry insiders, it is a classic speculative bubble with no relation to the real financial market activity or the economy. JPMorgan boss Jamie Dimon called it a fraud.

India yet to regulate bitcoin

In India, bitcoin companies include Zebpay, Unocoin, Coinsecure and Searchtrade, which have recently formed a Virtual Currency Association of India. The group has started lobbying the government to allow bitcoin trading.

However, the RBI has taken a strong stand against virtual currencies such as bitcoins pointing out that it has not issued any licence or authorisation for trade in them.