Although the leading software wallets are trustworthy, popular third-party companies have collapsed , or been hacked , in the past. Related Articles. Christine Vasileva 2 weeks ago. Unlike typical bitcoin wallets, peer-to-peer exchanges work similarly to Craigslist for cryptocurrency, allowing buyers and sellers in the same areas to find each other and meet up to trade bitcoins for cash. Related Terms Bitcoin Definition Bitcoin is a digital or virtual currency created in that uses peer-to-peer technology to facilitate instant payments. At this rate, the total number of bitcoins in circulation will approach a limit of 21 million. So what makes bitcoin so valuable?