What is Bitcoin

Bitcoin is a digital currency based on an algorithm.

This is a Bitcoin Address:

• 13f1Y5tbzHV96jd3CNgLAWLV7MRgjXcR6t
• It is 34 characters long.
• It ALWAYS starts with "1".
• Bitcoin is most commonly identified with "BTC" but you may also see "XBT", or ฿.
• The very first address with all of the basics is BITCOIN.ORG
• Wikipedia

So what about physical bitcoins?
Physical bitcoins are nothing more than the public and private keys of a bitcoin integrated somehow into an object. They ARE NOT for newbies, because in order to use a physical bitcoin, you must already have a wallet, and not just any wallet, but a wallet that can 'swipe private keys'. See part 1 about paper wallets. In my honest opinion, physical bitcoins are totally pointless -- they embody all of the disadvantages of a monetary unit and do not have any of the advantages of a digital currency. The point is that Bitcoin is easier and cheaper and better in every way to use than PayPal. Why would I make a physical coin out of my PayPal account? -- or Mastercard account?  The only reason to make a physical or paper wallet is for security, you make it once and hide it in a secure place -- here again the size and weight of physical bitcoins are totally working against you.  In the end: Physical bitcoins are a 'cute' but useless gag.

Talking about money; Bitcoin is much more than a 'digital money'.
Bitcoin is a platform or new dimension of the internet whose possibilities are extraordinary.

And this is the point, it is about much much more than money, it is about a new part (realm!) of the internet that is in its infancy and is expanding exponentially. I highly recommend you keep your eyes on Bitcoin and digital currency alltogether even if you don't want to get involved. It is NOT going away and it will become ubiquitious in the next 5 years. Right now companies like Ripple are poised to take over an entire market sector previously owned by PayPal and others. It truly is the 'next big thing' and you would be um, let's say 'naive' if you didn't at least inform yourself about this new technology.

I sum it up like this:
We already are using digital money every day!
Everytime you use PayPal or Mastercard you are already basically using digital money.
Did you have any physical money in your hands when using these cards? -- NO.
Did you even see the money? -- NO!
So what's the difference?
The difference is we believe this electronic transfer that just took place is somehow based on the money in our bank which is somehow based on gold which is controlled by our government.
To make a long story short, all of this just isn't true anymore.
The pyschological factor of our money has long surpassed the actual gold value or the backing of our governments.  And this is why, at this very instant, Iceland is poised to start adopting their own Bitcoin - called Auroracoin - as their national currency.  Only time will tell if the natives of Iceland actually adopt it -- but this is the cool part -- regardless of what the government of Iceland wants, if the people of Iceland decide to make it their default money, then guess what? It becomes their default money!

Because I don't want to bore you with the technicalities, we are noobs right? -- and we want to get started just using the damned things, you may now go to part 2 - "NEVER's"

Summary

• Bitcoin is a digital currency based on an algorithm.
• The most common identifier is "BTC".
• A Bitcoin address is 34 characters long.
• A Bitcoin address always starts with "1".
• A Bitcoin is NOT hackable, however a website is.
• Physical bitcoins are not for newbies and imho pointless.
• Bitcoin.org is the first address for the basics of Bitcoin.

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