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Bitcoin is a new online payment system for peer-to-peer transactions - system for the digital age.
People can use bitcoin for instant and secure transfer of value anywhere in the world.
Bitcoin is like cash, but with digital benefits.
Bitcoin has no central authority - instead it is an open network which is managed by its users.
Bitcoin use the P2P system - users can transact directly without needing an intermediary.
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.
Many large online businesses accept bitcoin, such as Overstock, Expedia, and Dell. Non-profits such as Wikipedia and the United Way also accept bitcoin donations. Look for a bitcoin payment option at many of your favorite websites and you'll be surprised how many accept bitcoin! You can view a list of merchants here.
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Unlike credit card networks like Visa and payment processors like Paypal, bitcoin is not owned by an individual or company. Bitcoin is the world's first completely open payment network which anyone with an internet connection can participate in. Bitcoin was designed to be used on the internet, and doesn't depend on banks or private companies to process transactions.
Bitcoin is traded for dollars, euros, yen, and other currencies in real time 24 hours a day. Depending on the demand for buying or selling bitcoin, the price can fluctuate from day to day. This is similar to the manner in which the value of a stock or property can go up or down based on supply and demand. Bitcoin's value can be volatile compared to traditional currencies such as the US dollar because it is still an emerging technology.
Bitcoin allows you to instantly send any amount of money to anyone in the world without needing a bank. It allows you to access your money without needing an ATM or credit card - bitcoin gives you back control over your money. Plus you can pay friends back for dinner, buy your next computer, and donate to charity, all using bitcoin.