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Bitcoins is a digital currency, an idea developed by Satoshi Nakamoto based on an open source protocol. There is no central issuer and it is exchanged through a website that manages your digital wallet , or directly in a digital wallet. There are also physical versions (casascius.com). Bitcoins allows 100% anonymous transactions, you do not need to provide personal information and there is no central authority involved. The same transaction cannot be done twice (double spending) as all transactions are tested and compared to previous transactions which only have a transaction ID and the amount.