Bitcoin: is a peer-to-peer payment system and digital currency introduced as open source software in 2009. It is a cryptocurrecny, so-called because it uses cryptography to control the creation and transfer of money. Users send payments by broadcasting digitally signed messages to the network. Participants known as miners verify and timestamp transactions into a shared public database called the block chain, for which they are rewarded with transaction fees and newly minted bitcoins.
Bitcoins can be obtained by mining or in exchange for products, services, or other currencies. Mining for bitcoins has gone high tech with services knows as: Hosted Bitcoin Mining Contracts. This allows the average person to mine for bitcoin without having to spend a fortune on expensive mining hardware.
In January 2014 Overstock.com became the first "major" online retailer to accept bitcoin as a form of payment.
FUN FACT: Conventionally "Bitcoin" capitalized refers to the technology and network whereas "bitcoins" lowercase refers to the currency itself.
