Bitcoin, what is it?

Welcome to the MFC series on Bitcoin! Over the next few weeks, we will look into how Bitcoin is used, created, and traded. And see if the benefits of using Bitcoin outweigh the risks.

Looking to purchase items online, but want to stay anonymous? Try Bitcoin. Interested in sending money to a friend, but don’t want to pay those bank fees? Try Bitcoin.

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Bitcoin is a currency. With the use of downloadable third party clients or an online trading service, Bitcoin can easily substitute any currency. But only in some cases. Not only is the value of Bitcoin extremely volatile, because of the amount of speculation over the currency, but also not all vendors are taking Bitcoin.

Bitcoin is an electronic payment network. Bitcoins can be bought from various third party vendors. The very informative Bitcoin site, lists them after informing a user what Bitcoin is and to choose a wallet, or a medium through which Bitcoins can be transferred.

Next week: Bitcoins, how are they created?