You've probably been hearing a lot about Bitcoin recently and are wondering what's the big deal? Most of your questions should be answered by the resources below but if you have additional questions feel free to ask them in the comments.
The following videos are a good starting point for understanding how bitcoin works and a little about its long term potential:
* [Video 1: What Is Bitcoin & Why Should You Care?](https://www.youtube.com/watch?v=NKSQdhxnvCc)
* [Video 2: The real value of bitcoin and crypto currency technology](https://www.youtube.com/watch?v=YIVAluSL9SU&index=1&list=FLqnDHJBl3xGTosMjyXc4-0A)
* [Video 3: Bitcoin Is Independent Money](https://www.youtube.com/watch?v=EzFOwFXlR48)
* [Video 4: Bitcoin 101 - Balaji Srinivasan](https://www.youtube.com/watch?v=JIxwTx7o_B4)
For lots of additional video resources check out the [videos wiki page](https://www.reddit.com/r/BitcoinWiki/wiki/videos) or /r/BitcoinTV.
**Key properties of bitcoin**
* **Limited Supply** - There will only ever be 21,000,000 bitcoins created and they are issued in a predictable fashion, you can view the inflation schedule [here](https://plot.ly/~BashCo/5.embed?share_key=ljQVkaTiHXjX2W41UiqzCn). Once they are all issued Bitcoin will be truly deflationary as coins are only lost over time.
* **Open source** - Bitcoin code is fully auditable. You can read the source code yourself [here](https://github.com/bitcoin/bitcoin).
* **Accountable** - The public ledger is transparent, all transactions are [seen by everyone](https://blockexplorer.com/).
* **Decentralized** - Bitcoin is globally distributed across thousands of nodes with no single point of failure and as such can't be shut down similar to how [Bittorrent](https://en.wikipedia.org/wiki/BitTorrent) works.
* **Censorship resistant** - No one can prevent you from interacting with the bitcoin network and no one can censor, alter or block transactions that they disagree with, see [Operation Chokepoint](https://en.wikipedia.org/wiki/Operation_Choke_Point).
* **Push system** - There are no chargebacks in bitcoin because only the person who owns the address where the bitcoins reside has the authority to move them.
* **Low fee** - Transactions cost a few cents, most wallets calculate this automatically but you can view current fees [here](https://bitcoinfees.21.co/).
* **Borderless** - No country can stop it from going in/out, even in areas currently unserved by traditional banking as the ledger is [globally distributed](http://bitcoinglobe.com/).
* **Trustless** - Bitcoin solved the [Byzantine's Generals Problem](https://en.wikipedia.org/wiki/Byzantine_fault_tolerance) which means nobody needs to trust anybody for it to work.
* **Pseudonymous** - No need to expose personal information when purchasing with cash or transacting.
* **Secure** - Encrypted cryptographically and can’t be confiscated with proper key management such as hardware wallets.
* **Nearly instant** - From a few seconds to a few minutes depending on need for confirmations.
* **Peer-to-peer** - No intermediaries with a cut, no need for trusted third parties.
* **Portable** - Bitcoins are digital so they are easier to move than cash or gold. They can even be transported by simply remembering a string of words for wallet recovery.
* **Scalable** - Each bitcoin is divisible down to 8 decimals allowing it to grow in value while still accommodating micro-transactions.
* **Designed Money** - Bitcoin was created to fit all the [fundamental properties of money](http://i.imgur.com/wkTyyaV.png) better than gold or fiat
Some excellent writing on Bitcoin's value proposition and future can be found [here](http://nakamotoinstitute.org/mempool/). Bitcoin statistics can be found [here](https://data.bitcoinity.org/bitcoin/hashrate/6m?c=m&g=15&r=week&t=a) and [here](https://coin.dance/stats). Developer resources can be found [here](https://bitcoin.org/en/developer-documentation) and [here](https://programmingblockchain.gitbooks.io/programmingblockchain/content/index.html). Peer-reviewed research papers can be found [here](https://docs.google.com/spreadsheets/d/1VaWhbAj7hWNdiE73P-W-wrl5a0WNgzjofmZXe0Rh5sg). Scaling resources [here](https://www.reddit.com/r/Bitcoin/comments/56nnd8/the_scaling_bitcoin_website_is_awesome_videos/), and of course **[the whitepaper](https://bitcoin.org/bitcoin.pdf)** that started it all.
## Where can I buy bitcoins?
[BuyBitcoinWorldwide.com](https://www.buybitcoinworldwide.com/) is a very helpful site for beginners. You can buy or sell any amount of bitcoin and there are several easy methods to purchase bitcoin with cash, credit card or bank transfer. Some of the more popular resources are below, also, check out the [bitcoinity exchange resources](https://data.bitcoinity.org/markets/exchanges/USD/30d) for a larger list of options for purchases.
Bank Transfer / Credit card | Cash
---|---
[Coinbase](https://www.coinbase.com/) | [LocalBitcoins](https://localbitcoins.com/)
[Gemini](https://gemini.com/) | [LibertyX](https://libertyx.com/)
[GDAX](https://www.gdax.com/) | [Mycelium LocalTrader](http://mycelium.com/lt/help.html)
[Poloniex](https://poloniex.com/) | [BitQuick](https://www.bitquick.co/?a=98201)
[Bitstamp](https://www.bitstamp.net/) | [WallofCoins](https://wallofcoins.com/en/?frame=1)
[Kraken](https://www.kraken.com/) | [BitcoinOTC](https://bitcoin-otc.com/)
[Xapo](https://xapo.com/) |
[SnapCard](https://www.snapcard.io/) |
[Cex.io](https://cex.io/cards/) |
[itBit](https://www.itbit.com/) |
[Bitit](https://www.bitit.gift/?referral=JTWWAIRY) |
[Bitsquare](https://bitsquare.io/) |
[Here](http://coinatmradar.com/) is a listing of local ATMs. If you would like your paycheck automatically converted to bitcoin use [Cashila](https://www.cashila.com/) or [Bitwage](https://www.bitwage.com/).
**Note:** Bitcoins are valued at whatever [market price](https://cryptowat.ch/bitfinex/btcusd/1hr) people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year. [Preev](http://preev.com/btc/usd) is a useful site that that shows how much various denominations of bitcoin are worth in different currencies. Alternatively you can just Google "1 bitcoin in (your local currency)".
## Securing your bitcoins
With bitcoin you can **"Be your own bank"** and personally secure your bitcoins **OR** you can use third party companies aka **"Bitcoin banks"** which will hold the bitcoins for you.
* If you prefer to **"Be your own bank"** and have direct control over your coins without having to use a trusted third party, there are many software wallet options [here](https://bitcoin.org/en/choose-your-wallet). If you want easy and secure storage without having to learn computer security best practices, then a hardware wallet such as the [Trezor](https://www.bitcointrezor.com/) or [Ledger](https://www.ledgerwallet.com/) is recommended. A more advanced option is to secure them yourself using [paper wallets](https://bitcoinpaperwallet.com/) generated offline. Some popular mobile and desktop options are listed below and most are cross platform.
Android | iOs | Desktop
--------------------|-----|-----
[Mycelium](https://play.google.com/store/apps/details?id=com.mycelium.wallet) | [BreadWallet](https://itunes.apple.com/app/breadwallet/id885251393) | [Electrum](https://electrum.org/#home)
[CoPay](https://play.google.com/store/apps/details?id=com.bitpay.copay&hl=en) | [AirBitz](https://itunes.apple.com/us/app/bitcoin-wallet-map-directory/id843536046?mt=8) | [Armory](https://btcarmory.com/)
* If you prefer to let third party **"Bitcoin banks"** manage your coins, try [Coinbase](https://www.coinbase.com/) or [Xapo](https://xapo.com/) but be aware you may not be in control of your private keys in which case you would have to ask permission to access your funds and be exposed to third party risk.
**Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email!**
2FA requires a second confirmation code to access your account, usually from a text message or app, making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below. Make sure you create backups of your 2FA codes.
Google Auth | Authy
--------------------|-----
[Android](https://play.google.com/store/apps/details?id=com.google.android.apps.authenticator2) | [Android](https://play.google.com/store/apps/details?id=com.authy.authy&hl=en)
[iOS](https://itunes.apple.com/us/app/google-authenticator/id388497605?mt=8) | [iOS](https://itunes.apple.com/en/app/authy/id494168017?mt=8)
## Where can I spend bitcoins?
A more comprehensive list can be found at the [Trade FAQ](https://en.bitcoin.it/wiki/Trade) but some more commons ones are below.
Store | Product
---|---
[Gyft](http://www.gyft.com/) | Gift cards for hundreds of retailers including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.
[Steam](http://store.steampowered.com/), [HumbleBundle](https://www.humblebundle.com/), [GreenmanGaming](http://www.greenmangaming.com/), and [Coinplay.io](https://coinplay.io) | For when you need to get your game on
[Microsoft](http://www.microsoftstore.com/) | Xbox games, phone apps and software
[Spendabit](https://spendabit.co/), [The Bitcoin Shop](https://shop.btcs.com/), [Overstock](http://www.overstock.com/), [Rakuten](http://global.rakuten.com/en/), [DuoSearch](https://duosear.ch/), [The Bitcoin Directory](http://bitcoin.directory/) and [BazaarBay](http://bazaarbay.org/) | Retail shopping with millions of results
[ShakePay](https://shakepay.co/#/) | Generate one time use Visa cards in seconds
[NewEgg](http://www.newegg.com/), [TigerDirect](http://www.tigerdirect.com/) and [Dell](http://www.dell.com/) | For all your electronics needs
[Cashila](https://cashila.com), [Bitwa.la](https://bitwa.la), [Coinbills](http://coinbills.com/), [Piixpay](https://piixpay.com), [Bitbill.eu](https://bitbill.eu), [Bylls](https://bylls.com), [Coins.ph](https://coins.ph), [Bitrefill](https://bitrefill.com), [Pey.de](https://pey.de/), [LivingRoomofSatoshi](https://www.livingroomofsatoshi.com), [Wagepoint](https://wagepoint.com), [Hyphen.to](https://www.hyphen.to/), [Coinsfer](https://coinsfer.com/), [GetPaidinBitcoin](https://www.getpaidinbitcoin.com.au/), [Coins.co.th](https://coins.co.th/), [More](https://cointelegraph.com/news/how-people-pay-bills-with-bitcoin-all-around-the-world) | Bill payment
[Foodler](http://www.foodler.com/), [Takeaway](http://corporate.takeaway.com/), [Thuisbezorgd NL](https://www.thuisbezorgd.nl), [Pizza For Coins](http://pizzaforcoins.com/) | Takeout delivered to your door!
[Expedia](http://www.expedia.com/), [Cheapair](http://www.cheapair.com/), [Lot](http://www.lot.com/us/en/), [Destinia](http://destinia.us/), [BTCTrip](https://btctrip.com/), [Abitsky](http://www.abitsky.com/), [SkyTours](http://www.sky-tours.com/), [Fluege](http://www.fluege.com/de/) the [Travel](https://www.gyft.com/buy-gift-cards/category/travel/) category on Gyft and [9flats](http://www.9flats.com/) | For when you need to get away
[BoltVM](https://boltvm.com/), [BitHost](https://bithost.io/) | VPS service
[Cryptostorm](https://cryptostorm.is), [Mullvad](https://mullvad.net), and [PIA](https://www.privateinternetaccess.com/) | VPN services
[Namecheap](https://www.namecheap.com/) | For new domain name registration
[Stampnik](https://stampnik.com) and [GetUSPS](https://www.getusps.com/#/) | Discounted USPS Priority, Express, First-Class mail postage
[Reddit Gold](https://www.reddit.com/gold/about/) | Premium membership which can be gifted to others
[Coinmap](http://coinmap.org/) and [AirBitz](https://airbitz.co/app/) are helpful to find local businesses accepting bitcoins. A good resource for UK residents is at [wheretospendbitcoins.co.uk](http://www.wheretospendbitcoins.co.uk).
There are also lots of charities which accept bitcoin donations, such as [Wikipedia](https://wikimediafoundation.org/wiki/Ways_to_Give#bitcoin), [Red Cross](https://bitpay.com/520663/donate), [Amnesty International](http://www.amnesty.org/), [United Way](http://www.unitedway.org/content/splash_holiday2014/), [ACLU](https://www.aclu.org/) and the [EFF](https://www.eff.org/). You can find a longer list [here](https://www.reddit.com/r/changetip/wiki/suggestions).
## Merchant Resources
There are several benefits to accepting bitcoin as a payment option if you are a merchant;
* 1-3% savings over credit cards or PayPal.
* No chargebacks (final settlement in 10 minutes as opposed to 3+ months).
* Accept business from a global customer base.
* Increased privacy.
* Convert 100% of the sale to the currency of your choice for deposit to your account, or choose to keep a percentage of the sale in bitcoin if you wish to begin accumulating it.
If you are interested in accepting bitcoin as a payment method, there are several options available;
* [Bitpay](https://bitpay.com/bitcoin-for-retail)
* [Coinbase](https://www.coinbase.com/merchants)
* [Coinify](https://coinify.com/merchants)
* [Snapcard](https://www.snapcard.io/accept-bitcoin)
* [GoCoin](https://www.gocoin.com/)
* [Mycelium Gear](https://gear.mycelium.com/payments_processing) (direct to your wallet)
* [Blockonomics](https://www.blockonomics.co/merchants) (direct to your wallet)
* [Bitaps](https://bitaps.com/api/)
## Can I mine bitcoin?
Mining bitcoins can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to [folding at home](http://folding.stanford.edu/). If you want to learn more about mining you can read more [here](https://en.bitcoin.it/wiki/Faq#Mining). Still have mining questions? The crew at /r/BitcoinMining would be happy to help you out.
If you want to contribute to the bitcoin network by hosting the blockchain and propagating transactions you can [run a full node](https://bitcoin.org/en/bitcoin-core/features/) using [this setup guide](https://medium.com/@lopp/how-to-set-up-a-bitcoin-full-node-2dd1c09763d3). You can view the global node distribution [here](https://getaddr.bitnodes.io/).
## Earning bitcoins
Just like any other form of money, you can also earn bitcoins by being paid to do a job.
Site | Description
---|---
[Bitwage](https://www.bitwage.me/prelaunch), [XBTfreelancer](https://www.xbtfreelancer.com/), [Cryptogrind](http://www.cryptogrind.com/#!/), [Bitlancerr](http://bitlancerr.com/), [Coinality](https://coinality.com/), [Bitgigs](http://bitgigs.com/), [/r/Jobs4Bitcoins](http://www.reddit.com/r/Jobs4Bitcoins), [Rein Project](http://reinproject.org/) | Freelancing
[OpenBazaar](https://openbazaar.org/), [Purse.io](https://purse.io/merchants/), [Bitify](https://bitify.com/), [/r/Bitmarket](http://www.reddit.com/r/BitMarket), [21 Market](https://21.co/mkt/) | Marketplaces
[Watchmybit](http://www.watchmybit.com/), [Streamium.io](https://streamium.io/), [OTika.tv](https://otika.tv/), [XOtika.tv](https://xotika.tv/) NSFW, [/r/GirlsGoneBitcoin](http://www.reddit.com/r/GirlsGoneBitcoin) NSFW | Video Streaming
[Bitasker](http://www.bitasker.com/), [BitforTip](http://www.bitfortip.com/), [WillPayCoin](https://www.willpaycoin.com/) | Tasks
[Supload.com](https://www.supload.com/), [SatoshiBox](http://satoshibox.com/), [JoyStream](http://joystream.co/), [File Army](https://file.army) | File/Image Sharing
[CoinAd](https://coinad.com/), [A-ads](https://a-ads.com/), [Coinzilla.io](https://coinzilla.io/) | Advertising
You can also earn bitcoins by participating as a market maker on [JoinMarket](https://github.com/chris-belcher/joinmarket) by allowing users to perform CoinJoin transactions with your bitcoins for a small fee (requires you to already have some bitcoins)
## Bitcoin Projects
The following is a **short** list of ongoing projects that might be worth taking a look at if you are interested in current development in the bitcoin space.
Project | Description
---|---
[Lightning Network](http://lightning.network), [Amiko Pay](https://cornwarecjp.github.io/amiko-pay/), and [Strawpay](https://www.strawpay.com) | Payment channels for network scaling
[Blockstream](http://www.blockstream.com/) and [Drivechain](http://www.truthcoin.info/blog/drivechain/) | Sidechains
[21, Inc.](https://21.co/) | [Open source library for the machine payable web](https://medium.com/@21/21-is-an-open-source-library-for-the-machine-payable-web-4f30d1437fde#.4k1wzg1rr)
[ShapeShift.io](https://shapeshift.io/) | Trade between bitcoins and altcoins easily
[Open Transactions](http://opentransactions.org/wiki/index.php/Main_Page), [Counterparty](http://counterparty.io/), [Omni](http://www.omnilayer.org/), [Open Assets](https://github.com/OpenAssets/open-assets-protocol/blob/master/specification.mediawiki), [Symbiont](http://symbiont.io/) and [Chain](https://chain.com/) | Financial asset platforms
[Hivemind](http://bitcoinhivemind.com) and [Augur](http://www.augur.net/) | Prediction markets
[Mirror](https://mirror.co/) | Smart contracts
[Mediachain](https://blog.mediachain.io/) | Decentralized media library
[Tierion](https://tierion.com) and [Factom](http://factom.org/) | Records & Titles on the blockchain
[BitMarkets](https://voluntary.net/bitmarkets/), [DropZone](https://github.com/17Q4MX2hmktmpuUKHFuoRmS5MfB5XPbhod), [Beaver](https://eprint.iacr.org/2016/464.pdf) and [Open Bazaar](https://openbazaar.org/) | Decentralized markets
[Samourai](http://samouraiwallet.com) and [Dark Wallet - abandoned](https://www.darkwallet.is/) | Privacy-enhancing wallets
[JoinMarket](https://github.com/chris-belcher/joinmarket) | CoinJoin implementation (Increase privacy and/or Earn interest on bitcoin holdings)
[Coinffeine](http://www.coinffeine.com/) and [Bitsquare](https://bitsquare.io) | Decentralized bitcoin exchanges
[Keybase](https://keybase.io/) and [Bitrated](https://www.bitrated.com/) | Identity & Reputation management
[Bitmesh](https://www.bitmesh.network/) and [Telehash](http://telehash.org/) | Mesh networking
[JoyStream](http://www.joystream.co) | BitTorrent client with paid seeding
[MORPHiS](https://morph.is/) | Decentralized, encrypted internet
[Storj](http://storj.io/) and [Sia](http://www.siacoin.com/) | Decentralized file storage
[Streamium](http://streamium.io/) and [Faradam](https://faradam.com/) | Pay in real time for on-demand services
[Abra](https://www.goabra.com/) | Global P2P money transmitter network
[bitSIM](http://www.bitsim.co/) | PIN secure hardware token between SIM & Phone
[Identifi](http://identifi.org/#section-services) | Decentralized address book w/ ratings system
[Coinometrics](http://www.coinometrics.com/) | Institutional-level Bitcoin Data & Research
[Blocktrail](https://www.blocktrail.com/) and [BitGo](https://www.bitgo.com) | Multisig bitcoin API
[Bitcore](http://bitcore.io/) | Open source Bitcoin javascript library
[Insight](https://insight.bitpay.com/) | Open source blockchain API
[Leet](https://www.leet.gg/) | Kill your friends and take their money ;)
## Bitcoin Units
One Bitcoin is quite large (hundreds of £/$/€) so people often deal in smaller units. The most common subunits are listed below:
Unit | Symbol | Value | Info
---|:---:|---|---
millibitcoin | mBTC | 1,000 per bitcoin | SI unit for milli i.e. millilitre (mL) or millimetre (mm)
microbitcoin | μBTC | 1,000,000 per bitcoin | SI unit for micro i.e microlitre (μL) or micrometre (μm)
bit |bit| 1,000,000 per bitcoin| Colloquial "slang" term for microbitcoin
satoshi |sat| 100,000,000 per bitcoin| Smallest unit in bitcoin, named after the inventor
For example, assuming an arbitrary exchange rate of $500 for one Bitcoin, a $10 meal would equal:
* 0.02 BTC
* 20 mBTC
* 20,000 bits
For more information check out the [Bitcoin units wiki](https://www.reddit.com/r/BitcoinWiki/wiki/bitcoin_units).
---
**Still have questions?** Feel free to ask in the comments below or stick around for our weekly [Mentor Monday](https://www.reddit.com/r/Bitcoin/search?q=mentor+monday&restrict_sr=on&sort=relevance&t=all) thread. If you decide to post a question in /r/Bitcoin, please use the [search bar](https://www.reddit.com/r/Bitcoin/search?q=&restrict_sr=on&sort=new&t=year) to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community so please do not message them unless you notice problems with the functionality of the subreddit. A complete list of bitcoin related subreddits can be found [here](https://www.reddit.com/r/BitcoinSerious/wiki/bitcoin411?may2015)
**Note:** This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification you can [edit it here](https://www.reddit.com/r/BitcoinWiki/wiki/rbitcoin_sticky) and it will be included in the next revision pending approval.
**Welcome to the Bitcoin community and the new decentralized economy!**
