All the links, software and information are out of date
What is mining?
Mining is the process of spending computation power to do calculations and find valid blocks and thus create new Bitcoins.
What are Bitcoins?
Bitcoins (BTC) are the unit of currency of the Bitcoin system. A Bitcoin isn't actually a “thing” you can point at. It is a virtual currency, just a number associated with a Bitcoin Address.
All the money-handling tasks are managed by the peer-to-peer network composed of the computers of its very users (you and me): validation of transactions, proof of ownership of Bitcoins, issuance of money itself, etc. Security is enforced by sound cryptographic principles built into the Bitcoin network protocol so that you cannot just modify the software and give yourself a large amount of money. For example, transactions or ownership of Bitcoins are proved by cryptographically signing them. Bitcoin offers very unique features such as anonymity, absence of middlemen, and cryptographically irreversible money transfers that no other system provides. The software is open source and multi-platform.
Simply put, a Bitcoin is like PayPal dollars except it is not controlled by any central authority such as a company or a bank: you don’t have to pay fees to make transactions.
Here’s a video with a short but good explanation about the Bitcoin:
Bitcoins can be traded for US Dollars or any other currency. As of July 18th 2011, 1 BTC can be exchanged for 13.75 US dollars. The BTC value has been growing since this system was invented and reached 31.90 value just before a hacker attacked the main market (Mt. Gox).
We could say it looks promising. If you are interested in more financial and technical data related to the Bitcoin visit the Bitcoin charts and Bitcoin Watch.
If you want to know further about the Bitcoin don’t hesitate to visit the FAQ.
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