BitCoin (Things You Need to Know)

Special About the Bitcoin System:
The Bitcoin is a system which allows you to do anonymous currency transactions and no one will come to know about the payment or about all other info related to the payment, including who sent it, who received it, etc.
Satoshi did it by making the system – a peer-to-peer network – controlled by no central authority but run
by a network of contributors and freedom enthusiasts, who donated their time and energy to this innovation.
Essentially, people can do money transactions and no authority or organization will come to know about it.
Satoshi Nakamoto was so talented that he even solved the problem of double spending of digital currency
in his system.

Double Spending:
We can make many copies of digital data, e.g. people copy software and sell it as counterfeit or pirated
copies. We may face the same problem with digital currency – one can copy the digital currency (let’s suppose USD100) and use it as many time as he/she like (as many notes of USD100). Satoshi solved this problem by showing all transactions in a public list. Whenever a new transaction is made, its validity is checked by confirming from the list that the digital currency was not used before. This way, no one can copy the currency and use it for more than one time. It’s a simple but effective idea to stop double spending of the same bitcoin.

Anonymity:
The public listing only shows the transaction ID and the amount of currency transferred. You will be anonymous in the system because you don’t need to provide any of your personal details like your name, address, email, phone number, etc. In comparison, when you use payment gateways like Paypal you have to give up all these personal details.
Using of Bitcoin:
Bitcoins are kept in a digital wallet which you can keep in your computer, or on a website online, which
will manage and secure your wallet for you. You can have as many wallets and bitcoin addresses (where you receive money from others) as you like. What’s more, you can use Bitcoin software on top of Tor to prevent anyone from tracking your IP address – total anonymity guaranteed!
Total Bitcoins:
At this very moment, 10.71 million Bitcoins are in existence, which is like 207.929 million USD worth!
In fact, the Canadian government is working on their own crypto-currency, named MintChip. (a glance:)
Mintchip, In one day, more than 45,000 transactions of a total of BTC 2.5 million (worth of USD48.5
million) is handled by the bitcoin network.
Spend Bitcoins:
Spending Bitcoins is a bit easier. You can send Bitcoins to a person, buy goods, or donate to non-profit foundations who accept it, such as Wikileaks, P2P Foundation, Operation Anonymous, Free Software Foundation, Archive.org.
You can send Bitcoins to anyone once you know their bitcoin address.
For merchandise, you can buy products from merchants that accept Bitcoins. Example – BitcoinDeals.