Everything You Need To Know About Bitcoin

Is it a new currency that'll render all other state-backed currencies irrelevant?

Or is it another attempt at an alternative currency that will ultimately fail?

No one knows for certain. But there's no doubt that there hasn't been a currency this disruptive in over 100 years. And investors looking to get in on the next “big thing” are flocking to Bitcoin.
You'll want to get yourself a bitcoin wallet to store your new bitcoins securely. (While they are called 'wallets' it might be best to think of them as a kind of bank account.) Most exchanges sites have wallets where they store digital and/or fiat currency for you, much like a regular bank account.
There are three main steps you'll need to know:

• Where to Buy Bitcoin
• Where to Exchange Bitcoin
• Where to Store Bitcoin
Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name.
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.
Several marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies.
People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally.
Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC.
Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities.
No one knows what will become of bitcoin. It is mostly unregulated, but that could change. Governments are concerned about taxation and their lack of control over the currency.