Bitcoin is a digital currency that allows users to pay for goods and services online or in person using a digital wallet on their phone or computer. Unlike traditional currencies controlled by banks, bitcoin transactions are processed and secured on a decentralized global ledger using strong cryptography. Bitcoin offers lower fees and faster international payments than traditional options. While it may seem risky, bitcoin provides stronger security than traditional online payments by keeping users' money under their sole control at all times.

1. Bitcoin
A new way to pay
Bitcoin is a digital currency. You keep it in
a digital wallet on your computer or
phone, and use it to pay for goods
online, in shops and restaurants, or to
transfer money to your friends.
Think of bitcoin as somewhere between
the cash you carry in your wallet and the
money you spend via your debit card.
Like debit cards, all payments are digital
and instant, but like the cash in your
wallet, you are the only one who has
control over your money.
The biggest difference between bitcoin
and traditional money is that when it
comes to bitcoin there is no bank
involved, balances are stored and
payments automatically processed on a
worldwide ledger that is extremely
secure thanks to some mind-bendingly
strong cryptography.
Anyone can access the bitcoin network
and verify that a transaction has been
sent, but only you can move your
money.
Global value
Common currency. Anywhere.
Bitcoin is growing as a common
international currency. It has value
because it is inherently secure, fixed in
supply, and an increasinly versatile
method of payment.
Think digital money sounds a bit risky?
It’s not uncommon, the vast majority of
sterling/dollar currency does not exist as
notes or coins but as numbers on a
centrally controlled ledger owned by a
bank (or many banks). Bitcoin simply
takes that ledger, distributes it across
the internet, and provides a free,
extremely secure open network which
does the job of the bank to process
transactions.
Cheaper. Faster.
Bitcoin is designed for the digital world.
• Ultra-low payment fees (think £0.01)
• International payments? – same story
• Sending £10 Million? – same story
• Forget waiting days for transfers to
clear, payments are instant.
Merchants
• No card processing cost
• No chargebacks – all payments are final
• Access international customers online
• Access younger customers online
• Low fees make micropayments viable
Safer
• When you use your card online or in a
store, you must hand over your account
details and trust the merchant to keep
your information secure. Each year
millions of records of sensitive personal
and account information are stolen,
and accounts compromised.
• When you pay with bitcoin, you never,
ever release they keys to your account,
your money is always controlled only by
you (but you do need to take
precautions to keep your keys secure).

2. Using bitcoin
Because bitcoin is opensource, wallet
and payment technology is getting
better all the time. Today QR codes are
common, you scan them with a
smartphone which pre-creates a
payment for you to authorise, but soon
you will be able to swipe any NFC
enabled smartphone to pay instantly.
Bitcoin-omics
New currency is released at a
predictable, decreasing rate to anyone
who participates in processing network
transactions. Once all coins are issued,
network processors will rely solely on
transaction fees.
Bitcoin is often referred to as a
‘deflationary’ currency, traditional
currencies are ‘inflationary’ as an ever
increasing supply of money is printed
causing prices to rise. If bitcoin adoption
expands faster than the new bitcoin
supply, then it is likely the price of goods
in bitcoin will gradually decrease. This is
a form of deflation, and is an example of
the different risks facing bitcoin.
Storing bitcoin
Smartphones are a great way to carry
small amounts of bitcoin around to pay
for meals/goods (think of it like carrying
cash). For larger amounts, secure wallets
can be stored on a home computer, or an
offline device (or even on paper).
Buying bitcoin
Bitcoin is often traded for cash between
individuals or purchased via bitcoin
exchanges (which can charge initial fees).
A growing number of towns and cities
also sport Bitcoin ATMs which allow you
insert cash and have the equivalent
amount in bitcoin sent to the wallet of
your choice.
Find out more
https://bitcoin.org
https://www.weusecoins.com/en/
http://www.reddit.com/r/Bitcoin/
https://blockchain.info/
https://en.bitcoin.it/wiki/Cold_storage
Introducing
Safer
Faster
Cheaper