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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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