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What are bitcoins?

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- Bitcoins are units of digital currency that can be - transferred over the Internet. - They get sent to a bitcoin address and stored in a digital wallet - that you can access with a - password. Creating and using a new wallet and address is free and as - easy as email. Try it here. -

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- Transactions between bitcoin addresses are - recorded in a public file and published on - the Internet. This file is called the block chain and it keeps track of what amounts are - stored at what addresses. -

- - About every 10 minutes, 50 new bitcoins are - generated and distributed proportionally to people that - contribute computing power to the network. The - software to participate is free and open source so anyone can run it on their computer. -

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- Over time, fewer and fewer - bitcoins will be created until there are a total of - 21 million of them in circulation by the year 2040. Each bitcoin - is divisible up to 8 decimal places, making - it possible to transact very small portions of them. -

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Why use them?

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- They're free, fast, secure, and global. Merchants - don't get charged for accepting them and you don't - get charged for transferring them, even - internationally. There are no fees, prerequisites, or - limits. You can register addresses anonymously and - create as many accounts as you like. They can - never be frozen because no central authority - controls them. Whether you're sending a fraction of - a cent or a million dollars, the network doesn't - discriminate. -

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- You can use bitcoins to securely store - and backup your savings and gain access to them - from anywhere that has Internet access. They tend to - appreciate in value over time because of their - limited supply so they make a good investment. - Unlike dollars and other national currencies, no - government or issuing authority can print more of - them. -

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- Bitcoins enable you to send free, - immediate payments to your friends and family - from your phone or laptop so you can pay a co-worker - back for coffee, transfer wages to family overseas, - or donate to organizations like WikiLeaks who have - been cut off by the major payment companies. -

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Where can I get some?

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- Contact one of our trusted exchangers. -

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- There are also several bitcoin markets operating online. The largest one in Canada - is cavirtex.com and is run out of Calgary. They link up buyers and sellers and facilitate trades by - allowing you to deposit and withdraw Canadian dollars directly from your bank account. A list of other - online exchanges and their rates can be found at bitcoincharts.com. -

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- You can also use sites like Local Bitcoins, Bitcoinary, and Bitcoin OTC to find people to trade with over the Internet if you want to take your chances with strangers. -

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How is their price set?

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- Most merchants accepting bitcoin will use an - exchange rate from one of the online markets - to determine their equivalent - dollar value. The exchange rate is simply the last - price that some seller was able to charge some - buyer for bitcoins in the free market and is - governed by supply and demand. -

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- Bitcoins aren't backed by any underlying - commodity or insured by any authority. They - have value as a form of currency due to their mathematically - guaranteed scarcity, security, ease of use, - distributed nature, lack of fees, divisibility, and - global recognition. -

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- We peg our rates - to cavirtex.com. -

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What can I buy with them?

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- You can spend them locally at one of our participating merchants or check out - this article for some other good suggestions. - The number of companies accepting bitcoins - is growing quickly and we're working to get more stores accepting them in - Vancouver. We believe it'll be in - their best interest to avoid the transaction fees - charged by the credit card companies. Transaction - fees end up getting built into the prices we pay for - goods and services across the board so we're all - paying for them indirectly. -

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Where can I learn more?

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- Come to our monthly meetup group or contact one of us. -

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