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Bitcoin and other cryptocurrencies are decentralized digital money, often reffered to as "internet money". Because they are independant of control by government or other institutions, they only "live" in so-called peer-to-peer networks, they are immune to inflation, confiscation, limitations and other manipulations. Though transactions are public, the source and target wallets can be completely anonymous. You can find more information on the official website www.bitcoin.org.
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