Bitcoin is crypto currency. That is, it is a way to easily, swiftly and with negligible costs, if any unlike ordinary portals, credit cards and banks, send and recieve payments from anyone anywhere in the world.

What is Bitcoin?

Bitcoin is digital money used for secure and instant transfer of value anywhere in the world. It is not controlled or issued by any bank or government - instead it is an open network which is managed by its users. Much in the way email improved communication by making it fast and cheap, bitcoin is an improvement on existing payment methods which were not designed for the internet era.

Is Bitcoin safe?

Bitcoin’s core protocol is viewable by anyone, has been vetted by thousands of security researchers around the world, and has proven to be robust and reliable after immense scrutiny. Using bitcoin is similar to using other private applications on the internet, such as email or online banking. Just like these other web services, you must access your bitcoin with a password in order to ensure only you have access to your money.
What is bitcoin, the currency?

One can use bitcoins to purchase goods on the internet and in stores. The following are some unique properties of Bitcoin:

Bitcoin is global: Bitcoins can be sent to someone across the world as easily as one can pass cash across the counter. Bitcoin isn't closed on weekends and doesn't impose any arbitrary limits.

Bitcoin is irreversible: Bitcoin is like cash in that transactions cannot be reversed by the sender. In comparison, credit card, popular online payment systems, and banking transactions can be reversed after the payment has been made - sometimes months after the initial transaction.

Bitcoin fees are cheap: Bitcoin transaction fees are usually negligible. Currently, they range from half of a cent USD to 5 cents USD, for a bitcoin transaction of any size. This is significant to merchants, who are used to paying ~2-3% with credit cards (and passing these fees on to their customers), and great for everybody who is accustomed to paying $2 - $5 to withdraw cash from an ATM.

Bitcoin is private: When paying with bitcoins, there are no bank statements, and one need not provide unnecessary personal information to the merchant. Bitcoin transactions do not contain any identifying information other than the bitcoin addresses and amounts involved.

Bitcoin is secure: Due to the cryptographic nature of the Bitcoin network, Bitcoin payments are fundamentally more secure than standard debit/credit card transactions. When making a Bitcoin payment, no sensitive information is required to be sent over the internet. There is very low risk of your financial information being compromised, or having your identity stolen.

Bitcoin is open: Every transaction on the Bitcoin network is published publicly, without exception. This means there's no room for manipulation of transactions, changing the money supply, or adjusting the rules mid-game. The software that constitutes the core of Bitcoin is free and open-source so anyone can review the code.

Getting a Bitcoin address with a Coinbase wallet is as easy as 1,2,3!

Sign up with Coinbase here: https://www.coinbase.com

Go to the Addresses Section here: https://www.coinbase.com/addresses

Click ‘Create New Address’

Any address you create here will remain associated with your Coinbase account forever. You can generate as many addresses as you like.

Click the "Details" button next to any address to display the corresponding QR code. These work similar to barcodes at the grocery store, and can be scanned with a smartphone to reveal your bitcoin address.


Why would I use Bitcoin? Why should I use Bitcoin?

If you're just getting started with Bitcoin, you may be asking yourself what the benefits really are. Here are the most popular reasons people choose to use bitcoins:


Peer to Peer

When you send bitcoins to someone else, there is no required involvement from a payment processor. This means the fee for each transaction is very small -- from zero to negligible. If you use a Coinbase wallet to send, we pay the fees for you to ensure that your payment is confirmed as fast as possible.

Being peer to peer also means that there's no central entity controlling the network. There's no need to trust or receive permission from any specific person or organization to participate in the Bitcoin network. For this reason, Bitcoin is global and resilient to problems that have plagued traditional currencies.


Effortless online payments

In many cases, using bitcoin is the easiest and quickest way to make a payment on the internet. When making a donation, or buying a digital item that doesn't require shipping, Bitcoin doesn't require any personal information. The merchant doesn't need any information, because they aren't charging you (like a credit card), rather you are sending them the payment (like cash).


Reduced risk for merchants

Accepting traditional credit card payments is not only expensive for merchants, it also leaves them open to fraudulent payment reversals and chargebacks. Since Bitcoin payments are not reversible, once a merchant has received payment, they can be sure that the payment will not be cancelled fraudulently. If a merchant doesn't have access to traditional credit card or payment networks, Bitcoin enables them access to the global economy instantly, and with negligible fees.


Complete control over your money

Bitcoin enables the freedom to store and control your money in an unprecedented manner. Free from restrictions, penalties and fees commonly imposed by banks, you are empowered to make decisions about your finances that were previously the domain of financial institutions and governments.

Bitcoin enables you to take responsibility for your savings, to store them on a hard drive or even on a paper wallet. Money without the need to trust a third party is something Bitcoin enables that has never existed before. Trusting third parties isn't necessarily bad, but having the option is important. Coinbase who I use, also offers the opportunity to be in complete control of your funds with their true multi-signature vault accounts.


As an investment

Note: Neither myself nor Coinbase provide financial advice. Whether or not to invest in bitcoin is something everyone must decide for themselves. Common advice is not to invest more than you can afford to lose.

In its short life and as of this writing, the value of a bitcoin has been measured at everything from less than one penny, to over a thousand US Dollars. It is clearly a risky investment, with the possibility of significant financial gain for some, but not all.

Many compare the Bitcoin network at its current stage of development to the internet 20 years ago. There are still many questions about how it will be used, and about the scale of its impact as the network matures. Bitcoin is considered a store of value like gold, but it can also serve as a method of transferring funds internationally. The future value of a bitcoin will depend on what role(s) the Bitcoin network assumes over time in the global economy.


Be part of a movement, and a community

Bitcoin is exciting, and bitcoin users are interesting people! Whether you want to use bitcoins to buy something online, accept Bitcoin payments for your business, or even develop your own software on top of the Bitcoin network, there's a vibrant community of motivated people that would love to help you. Since Bitcoin is such a new concept, there are many new applications and use cases that have yet to be realized.



How do I spend bitcoin? What can I buy with bitcoin?

Since bitcoin is like electronic cash, most purchases take place online. It's also possible to send and receive bitcoin in person at retail shops, or anywhere else where bitcoin is accepted.

If you already have some bitcoin and are looking to spend it, this article will walk you through the checkout process.

Paying with bitcoin online is actually quite similar to a traditional credit card checkout process. In some ways, paying with bitcoin is similar to sending an email, except that instead of sending a message to an email address, you’re sending an amount of money to a bitcoin address.

One of the nice things about paying with bitcoin is that you don’t need to give up as much personal information. You only need to give your name and address if you’re purchasing physical goods. If it’s a digital item, then your email will usually suffice and if you’re making a donation, you may not need to provide any information at all.

After you provide the required information, rather than asking for a credit card number, the website will display the bitcoin payment information which will consist of at least one of the following:

A link to "Sign in to Coinbase"

A QR Code

A Bitcoin address

At this stage, the process may differ slightly depending on the type of bitcoin wallet you're using.


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