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What is Bitcoin?

Bitcoin is a decentralized electronic currency created by Satoshi Nakamoto in 2009. The name applies also to the protocol designed by the same author and the P2P network that sustains it. Unlike the majority of currencies, Bitcoin does not depend on the confidence in any central transmitter, but it uses a working test system to prevent double spending and achieve consensus among all nodes.

Bitcoin is a relatively new project that is evolving. For this reason, its developers recommend caution and treat it as experimental software.

Where do I start?

First thing to do is getting a Wallet. There are two main options:

Get a Wallet online at blockchain.info or similar website.

Run the official bitcoin client and run the wallet in your computer. You can download the original bitcoin client from here.

What next?

Get bitcoins by selling something or offering services. Exchange dollars for bitcoins at mtgox.com and similar sites. Mine bitcoins using your computer.

Spend your bitcoins. There are many businesses accepting bitcoins.

If you want to know more about Bitcoin, read more below.

If you're going to investigate the Bitcoin, there are a few things that you should know. Bitcoin does not allow you to send emails or taking pictures; It allows the exchange of money and value. As such, Bitcoin must be treated with the same care as an ordinary wallet, or even more, and in some cases!

Bitcoin price is volatile

Price bitcoin unpredictable you can increase or decrease in a short period of time, the nature of the economy, and the novel the young sometimes illiquid markets. Consequently, keeping their savings in bitcoin is not recommended. Bitcoin should be treated as high risk asset, and you should never keep money that you can't afford to lose with Bitcoin. If you're receiving payments from Bitcoin, many service providers let you convert them immediately to your local currency.

Bitcoin payments are irreversible

Any transaction which you can spend with Bitcoin is irreversible. Can be made only by the person receiving the funds. This means that you should take care to do business with people or organizations that you know and trust. But don't worry, you can detect typos and usually does not allow you to send money to an invalid address.

Bitcoin is still experimental

Bitcoin is an experimental new currency, which is in active development. Despite the fact that it becomes less experimental, as usage grows, you should be aware that Bitcoin is a new invention, which explores the ideas that have never been tried before. As such, its future cannot be predicted by anyone.