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What is Bitcoin?

Bitcoin is an open source software based payment network created by Satoshi Nakamoto.  Bitcoin is a decentralized p2p  currency, which means that there is no government or central authority controlling it.  P2P stands for Peer to Peer which means that the network is run by individual people.  The backbone of Bitcoin is the blockchain, which records every transaction, it prevents submitting fake transactions.  Because it is permanent and there is a public record of everything, any user can view another transaction.  You might be thinking that if anyone can see another transaction then how do people remain anonymous? If you never reveal your identity then you have a pretty good chance at remaining hidden, but say you make a large donation in your name with Bitcoin the chances of you being increase greatly.  To increase your privacy, change Bitcoin addresses every transaction.  Another plus of using Bitcoin is there are no fee’s regardless of where you send money to.  By far the coolest part of Bitcoin is that anyone can create it, its called Bitcoin mining.  All you need is a powerful gpu and a Bitcoin mining client and you can begin to mine Bitcoins.  A word of advice that is very important – Bitcoin transactions are irreversible.  So if you accidentally send Bitcoins to the wrong address you will most likely never see them again unless the owner of the address is very kind.

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