Bitcoin is a peer payment system that was created as an open source software in 2009. It was developed by Satoshi Nakamoto to be used as a cryptocurrency. It is called a cryptocurrency because it uses cryptography to create and transfer money. Users of the system can send payments to vendors or merchants by broadcasting digital messages across the network. If this system interests you, you may want to learn more about What is Bitcoin.

It is meant to be a secure system because the transactions cannot identify who the payer and payee are. The transactions merely transfer ownership of the coins from one address to another in the system. A block of transactions, called the block chain, happens about every ten minutes. This is a confirmation of the shared public record for the system users.

This digital currency is very volatile. It has also been susceptible to theft in the past. Because of its cloak of anonymity, it is sometimes difficult to determine who the real owners of the coins are and who is doing the transactions. For this reason, some countries, such as China, prohibit their financial institutions from using the digital currency.

There are currently more than twelve million of these bitcoins in circulation. It is estimated that every ten minutes, approximately twenty-five of the coins are created. However, there is a cap to the total supply of coins which can be in circulation, which is twenty-one million. The exchange price is extremely volatile, and for this reason many people do not believe that it is able to function properly as a currency.

The payment processing fees in the system are usually optional. However, any transaction that pays a fee is usually processed more quickly than those that do not. These fees tend to be lower than the ones charged by credit cards or fees for money transfers. It is estimated that by 2140 there may be more than 20 million bitcoins in existence. Once this happens, transaction processing will be incentivized by fees alone.

The system uses public key cryptography which is set up in pairs, one that is public and one that is private. This collection of cryptography keys is sometimes called a wallet. The public keys transfer currency ownership to new addresses in an alphanumeric form. The private keys act as a system safeguard by transmitting payment messages from a particular address that contains the connected public key, as well as the digital signature. This is proof that the user possesses of the related private key.

Protecting private keys is an important part of the Bitcoin security, since anyone who has a private key can spend the currency that is sent to a corresponding address. There have been many instances of theft in this system. Remember to keep your wallet secure.

It is a good idea to contact your local bank or regulatory agency for more information on What is Bitcoin. Protect yourself from theft by only performing transactions on a computer that you alone have access to.

If you need to learn more about bitcoin gaming, follow this link here. For more on bitcoin and cryptocurrency opportunities, visit http://en.wikipedia.org/wiki/Bitcoin today.