Bitcoin is a digital currency created by the anonymous Satoshi Nakamoto and is not controlled by any single entity. It uses cryptography to control the creation of new bitcoins and verify transactions without the need for a central authority. Users can send and receive bitcoins through peer-to-peer software or exchanges. While bitcoins have value due to demand and a limited supply, transactions are not completely anonymous and bitcoin exchanges can experience price differences.

1. Bitcoin An Emerging Global Currency
The concept of virtual currency has been around for quite a sometime since the
birth of the internet. There are may of them which came into existence in the
period of time like Flooz, Beanz and even Egold but they were unable to create
a viable form of currency. Then in 1999 a person named Satoshi Nakamoto
published a paper (All the links at the bottom of this article in Links section
including video of interview with Bitcoin technical lead) on a true Peer-to-Peer
global currency. And the bitcoin came into existence with Satoshi s release of�
source code into the open source community. The currency has been described as,
Bitcoin is a peer-to-peer currency. Peer-to-peer means that no central�
authority issues new money or tracks transactions. These tasks are managed
collectively by the network. One problem with previously invented virtual�
currencies was that they were backed and supported by a single company, and
everything is centralized to that company but Bitcoin is peer to peer meaning
there is no centralized company controlling the flow of Bitcoin
What are Bitcoins?
Bitcoins are the kind of files that are stored in your computer just like mp3
files or text files or word document etc. And they are virtual coins based on
cryptography which can be used to trade with different commodities in the
Bitcoin supporting markets.
How can Bitcoins be sent or received?
Currently there are three ways to sent or receive Bitcoins:
1) Send or receive Bitcoins directly using peer to peer software
2) Using an escrow service
3) Using Bitcoin currency exchange
, there are many merchants who has started using Bitcoin as acceptable currency
for their daily transaction.
Who is creating Bitcoins?
Anyone can create Bitcoins with a powerful computer system by downloading free
software from Bitcoin website. Currently the Bitcoins are created in blocks of
50 Bitcoins at a time. If you try to create Bitcoins with a normal laptop
available in market these days, it will take about 1 to 5 years to create a
block of Bitcoin which is not feasible to do because you will end up spending
more money in paying for electricity than what you get from Bitcoins.
There are group of people using GPUs (graphical processing units) stacked up
together to create needed computing power for generating Bitcoins. It is
possible to buy out Bitcoins from these communities online instead of trying to
make your own.
What s the exchange rate for Bitcoins?�

2. As of today May 16, 2011: 1 Bitcoin is trading for $7.92
Currently there are more than $6 million worth of Bitcoins in the circulation.
And due to the complexity of the algorithm, only 21 million can be made by the
year 2140.
Who is involved in Bitcoin?
Bitcoin was invented by an anonymous person with Japanese name Satoshi Nakamoto
but after submitting the project to the open source community, he has not been
involved directly with the project. Currently the technical lead of the Bitcoin
project is Gavin Andresen.
It might take a while before governments will start noticing this new currency
and will start trying to stop it or ban it to some extent by making it illegal
or try to find some workarounds. Success of this currency will depend on how
fast people around the world will start adapting to it and importantly how soon
businesses will start accepting Bitcoins as a valid entity of payment. This
might create a powerful wave of troubles for countries with strong currency but
at the same time it could be true independent self floating global currency.
No Central Command
Bitcoin isn’t owned by anyone. Think of it like email. Anyone can use it, but
there isn’t a single company that is in charge of it. Bitcoin transactions are
irreversible. This means that no one, including banks, or governments can block
you from sending or receiving bitcoins with anyone else, anywhere in the world.
With this freedom comes the great responsibility of not having any central
authority to complain to if something goes wrong. Just like physical cash, don’t
let strangers hold your bitcoins for you, and don’t send them to untrustworthy
people on the internet.
Secure Your Wallet
There are several different types of Bitcoin wallets, but the most important
distinction is in relation to who is in control of the private keys required to
spend the bitcoins. Some Bitcoin ’wallets’ actually act more like banks because
they are holding the user’s private keys on behalf. If you choose to use one of
these services, be aware that you are completely at their mercy regarding the
security of your bitcoins. Most wallets, however, allow the user to be in charge
of their own private keys. This means that no one in the entire world can access
your account without your permission. It also means that no one can help you if
you forget your password or otherwise lose access to your private keys. If you
decide you want to own a lot of Bitcoin it would be a good idea to divide them
among several different wallets. As they saying goes, don’t put all your eggs in
one basket.
Bitcoin Price
Like everything, Bitcoin’s price is determined by the laws of supply and demand.
Because the supply is limited to 21 million bitcoins, as more people use Bitcoin
the increased demand, combined with the fixed supply, will force the price to go
up. Because the number of people using Bitcoin in the world is still relatively
small, the price of Bitcoin in terms of traditional currency can fluctuate
significantly on a daily basis, but will continue to increase as more people
start to use it. For example, in early 2011 one Bitcoin was worth less than one
USD, but in 2015 one Bitcoin is worth hundreds of USD. In the future, if Bitcoin
becomes truly popular, each single Bitcoin will have to be worth at least
hundreds of thousands of dollars in order to accommodate this additional demand.

3. Bitcoin Exchanges
There are several ways to buy Bitcoin, but trusted exchanges are a great way to
acquire Bitcoin. Because there are inefficiencies in the traditional banking
system, exchanges will sometimes have slightly different prices. If the
difference is too great, traders will buy low on one an exchange and sell high
on another and close the gap. If an exchange constantly has substantially
different prices than others, it is a sign of trouble and that exchange should
be avoided. As with everything else, do your research and find an exchange you
can trust. It s also a good idea not to use an exchange as a wallet. Move your�
Bitcoin to your personal wallet so that you have control over your funds at all
times. You can view our list of Bitcoin exchanges here.
Bitcoin Isn't Completely Anonymous
Because all Bitcoin transactions are stored on a public ledger known as the
blockchain, people might be able to link your identity to a transaction over
time. Some companies offer various tools such as Bitcoin mixers to help achieve
greater privacy, but it takes a huge amount of effort to use Bitcoin
anonymously. You may want to follow your country s tax regulations regarding�
Bitcoin in order to avoid trouble with the law, but you have the power not to
should you choose to take that risk. To improve privacy, most newer Bitcoin
wallets will use a new Bitcoin address each time someone sends bitcoins to you.
Unconfirmed Transactions
Bitcoin transactions are seen by the entire network within a few seconds and are
usually recorded into Bitcoin's world wide ledger called the blockchain, in the
next block. While it s possible that a transaction won t be confirmed in the� �
next block, in the vast majority of circumstances it is fine to accept a
transaction as soon as it has been seen by the network. Unlike traditional
payment systems, Bitcoin transactions are lightning fast and can be sent
globally. Bitcoin is still relatively new, but with each passing day the
technology becomes more reliable. It is more and more unlikely that a major bug
will emerge in the system as time goes by, and people can trust the technology
more with the passing of time. Each month people transact hundreds of millions
of dollars worth of Bitcoin.