This seems like a pretty well balanced answer to the question.
Ask LH: How Does Bitcoin Work And Is It Safe?
Alex Kidman
2013-01-29
http://www.lifehacker.com.au/2013/01/ask-lh-how-does-bitcoin-work-and-is-it-safe/Dear Lifehacker, I have seen Bitcoin as a payment option on some websites recently. Can you please explain exactly what it is? And is it safe to use? Thanks, Bitcoinfused
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It’s not entirely surprising that you’re confused by bitcoin, because there’s quite a bit to wrap your head around.
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The other important issue to consider with Bitcoin is that it is intended as an experimental currency. This isn’t like using, say, PayPal, where you’re trading in currency you understand and most likely hold.
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So are Bitcoins “safe” to use? It’s an interesting question with no absolute answer.
The encryption within bitcoins make them theoretically impossible to forge,
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If you’re looking at a service that offers to sell you goods and services in bitcoin, you’re most likely looking at this stage at smaller level transactions, and for that, it seems a reasonable proposition. As an overall currency, if you were interested in trading, investing or harvesting large quantities of the currency, I’d be wary. Despite its rapid acceleration, Bitcoin is still a relatively immature currency.
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