WHAT IS BITCOIN?

 
Technically speaking, 'Bitcoin'a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.It is a new currency that was created in 2009 by an unknown person(or people) using the alias "Satoshi Nakamoto".
Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name. More and merchants are beginning to accept them across different platforms, majorly for online payments/transactions.

Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.
However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money.



No single person or organization produces bitcoins. This currency is not physically printed by any central bank, instead, it is created digitally, by a community of people, open to anyone and everyone. Bitcoins are ‘mined’, using computing power in a distributed network.
This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network.

Why use Bitcoins?

Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

1. De-centralization

The bitcoin network is not controlled by one central authority. Every machine that mines bitcoin and processes transactions makes up a part of the network, and the machines work together. That means that, in theory, one central authority can’t tinker with monetary policy and cause a meltdown – or simply decide to take people’s bitcoins away from them. So if some part of the network goes offline for some reason, the money keeps on flowing.

2. Easy to set up

Opening a bank account can be pretty tasking, with identification and filling forms. Setting up merchant accounts for payment is another uphill task, beset by bureaucracy. However, you can set up a bitcoin address in seconds, no questions asked, and with no fees payable.

3. Anonymousity

Bitcoin addresses aren’t linked to names, house addresses, or other personal information which can be used for Identification. Although bitcoin stores details of every single transaction that ever happens in the network in a huge version of a general ledger, called the blockchain. The blockchain tells all. If you have a publicly used bitcoin address, anyone can tell how many bitcoins are stored at that address. They just don’t know that it’s yours.
There are measures that people can take to make their activities more opaque on the bitcoin network, though, such as not using the same bitcoin addresses consistently, and not transferring lots of bitcoin to a single address.

4. Transaction fees are little

Your bank may charge you a fee for international transfers. Bitcoin doesn’t.

5. It’s Quick

You can send money anywhere and it will arrive minutes later, as soon as the bitcoin network processes the payment.

6. Non refundable

When your bitcoins are sent, there’s no getting them back, unless the recipient returns them to you. They’re gone forever.

 How can I get Bitcoins

Buy on an Exchange
Several marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. Mt. Gox is the largest bitcoin exchange.

Where to Buy and Sell Bitcoin

Exchange	About	Based
	Coinbase operates one of the most popular wallets and is an simple way to buy bitcoin. $5 bonus on sign up.	USA	BUY BITCOIN
	Localbitcoins matches buyers and sellers online and in-person, locally worldwide.	Finland	BUY BITCOIN
	BitQuick claims to be one of the fastest ways you can buy bitcoin.	USA	BUY BITCOIN
	CoinCorner allow purchases with credit and debit cards for verified users.	Isle of Man	BUY BITCOIN
	Bitbargain has a vast range of different payment options for UK buyers.	UK	BUY BITCOIN
	Xapo is Known for it's ease of use and bitcoin cold-storage vault.	USA	BUY BITCOIN

How can I Save my Bitcoins

Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer/server. This wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save money. Unlike bank accounts, bitcoin wallets are not insured by any regulatory body.
 Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities.

What is the Future of Bitcoins?

No one knows what will become of bitcoin. It is mostly unregulated, but that could change. Governments are concerned about taxation and their lack of control over the currency. The value of bitcoins keep rising to almost that of gold so it seems it is a viable investment to make.
PS: At the time of this blogpost the current rate of 1Bitcoin to a Dollar is about $900, after reaching $1000 a few weeks ago.