It was only a matter of time before Bitcoin, the anonymous online payment currency, was used to pay for sex. A subreddit popped up at the beginning of April called "Girls Gone Bitcoin". The premise is that women post photos in various states of undress with their Bitcoin account address in the photo, and men can "tip" them to encourage more photos.
Basically, it's a strip club without the body glitter and overpriced drinks.
Bitcoin is an online currency system that functions simliar to the way silver or gold would, fluctuating in market priced based on demand. As as result, there's no one exact exchange rate for how much a Bitcoin is worth (currently, it's around $5.12 US).
Since the way Bitcoin is exchanged is more anonymous than PayPal or credit cards, they're used for illicit transactions, such as purchasing drugs online.
By paying for a striptease online with Bitcoin, you don't have to worry about a suspicious charge on your credit card statement from a "gentlemen's club" or a pornographic website. Using them to pay for sex is the logical next step; it just took someone a while to figure out how to structure the marketplace.
The girls post with Post-It notes saying their unique Bitcoin account address and the date for verification, so that the "tippers" know it's a real girl and not some scammer posting found photos.
A confusing power struggle for control of the subreddit between two strip-for-Bitcoin entrepreneurs created a rift and two separate sites. Stipcoin.com redirects to /r/girlsgonebitcoin, while girlsgonebitcoin.info was create by someone banned from the subreddit. The owner of girlsgonebitcoin.info plans on using URL for a rate-my-photo site where people can "rate" girls using bitcoins.
Because Bitcoin is difficult to use, hasn't exactly caught on past a small community of people who either care passionately about not using government currencies or are interested in buying drugs. The intersection of those two groups meets quite nicely on Reddit, so it's not a surprise that this new development has found its home there.
What IS surprising is that there are hot girls who are into Bitcoin on Reddit?