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Definition

Bitcoin

Bitcoin is a digital currency (also called crypto-currency) that is not backed by any country's central bank or government. Bitcoins can be traded for goods or services with vendors who accept Bitcoins as payment.

Bitcoin-to-Bitcoin transactions are made by digitally exchanging anonymous, heavily encrypted hash codes across a peer-to-peer (P2P) network. The P2P network monitors and verifies the transfer of Bitcoins between users. Each user's Bitcoins are stored in a program called a digital wallet, which also holds each address the user sends and receives Bitcoins from, as well as a private key known only to the user. 

The Bitcoin network is designed to mathematically generate no more than 21 million Bitcoins and the network is set up to regulate itself to deal with inflation. Bitcoins can be spent by initiating a transfer request from a Bitcoin address in the customer's wallet to a Bitcoin address in the vendor's wallet. As of this writing, one Bitcoin (also called a BTC)  is worth $104 -- but just as with stocks, the value of Bitcoins can fluctuate quickly. 

In the United States, Bitcoins are controversial because they can be used to anonymously transfer illicit funds or hide unreported income from the Internal Revenue Service (IRS). Bitcoin policy now requires transactions that involve traditional, government-backed currencies to be attached to an identity. 

This CNN video provides an overview of Bitcoin:

This was last updated in June 2013

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There's no doubt that bitcoin mining can gain it's popularity in few years from now. This kind of system can really help many people in buying stuff online or make it grow even without the control of authorities and government.
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Thnks , I would like to take some infos from here , I find your blog very interestingI'm building a new site:
www.online-incomes.com
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It is a great thought, my dear friends, to invest in bitcoins. As bitcoins not controlled by anyone the price of bitcoins can eventually fall at any time and can rise at any time. What if I told in 2010 the price of bitcoins was less than 1$ but after 7 years the price of bitcoins Have increased up to 2000$. According to rumors, the price of bitcoin can increase up to 3500 $. So What ill suggest You that to invest in bitcoins. Because one day it will be worth more than House. If you Invest 100 $ in bitcoins. who knows after few years it will become 3500$.
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Invest in Bitcoins is good, Visit Writefirst
for step by step guide to investing in Bitcoins.
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