Much of bitcoin's appeal comes from the fact that bitcoins are transferred from person to person like cash, rather than using an intermediary like banks or credit card companies. Getting rid of card companies cuts out transaction fees, which can top 3 percent. Bitcoin could be a boon for cross-border remittance and in expanding e-commerce in emerging markets. A bitcoin transfer would be immediate and could theoretically eliminate all transaction fees.

Bitcoins are transferred from person to person like cash. Instead of using a bank as a middleman, transactions are recorded in a public ledger (known as a blockchain in bitcoin speak) and verified by a pool of users called miners. While the ledger records transactions, no one can use your bitcoins without a special password. The technology behind this is open-source and considered rock solid. Passwords are virtually impossible to guess; and verification makes sure no one spends the same bitcoins in two places at once.

The major Bitcoin exchanges don't accept credit cards-- because that whole anonymity problem-- so instead, youre concourage to purchase Bitcoin by adding your bank account information to a site like Coinbase, and transferring money that way. You can also get Bitcoin by using your phone, the virtual program Second Life, wire transfer, or at a cash deposit location like CVS.

Bitcoin's founder is Satoshi Nakamoto, which is a  Pseudonym . Nakamoto "released Bitcoin to the world at the beginning of 2009, but said he had been working on it since 2007,"

In 2012, the exchange rate for 1 Bitcoin = $10 April 4, 2013 = $140  And in November 2nd, 2017 its worth $7000.

In the US, the answer is probably yes, but it still depend on what state you're in. Doing something illegal with Bitcoins---like bringing someone of buying drugs -- is still illegal.

New Bitcoins are created in a process called "mining," which involves Bitcoin users attempting to figure out a complex mathematical solution related to the cuttent number of Bitcoins. Like finding a missing piece of a puzzle. Whomever finds the puzzle piece wins a certain number of Bitcoins, and the process starts all over again.

People seeking privacy in their financial transactions-- for legitimate or illegitimate reasons -- might also use Bitcoin because it's more anonymous that financial transactions using credit or debit cards.

A Bitcoin wallet is a service that holds your Bitcoin for you. Unlike bands, Bitcoin wallet firms don't generally invest the money you deposit with them. But there's a catch -- Bitcoin wallets don't have the FDIC (Federal Deposit Insurance Corp.) backing that insures American's bank deposits up to $100,000.

You hold on to Bitcoins by setting up a virtual wallet, either on your computer-- Although storing you Bitcoin wallet only on your computer is about as secure as stuffing hundred dollar bills under your mattress.

A Bitcoin is a unit of currency, launched in 2009, that only exists online and isn't controlled by any kind of central authority, like US Federal Reserve. You can send Bitcoins to anyone who has a web connection (or hand some one your hard drive containing the currency.)