What is a bitcoin transaction?

Congratulations! You’ve got bitcoin in your wallet! Now what.
What is a bitcoin transaction? (Of course if you actually have bitcoins in your wallet you’ve been on the receiving end of a bitcoin transaction whether you realize it or not.)

The short story is that a bitcoin transaction transfers the value of a bitcoin from the sender to the receiver.

A transaction is like pulling out some cash from a leather-wallet and giving it to you.

A better analogy is email. Except, instead of using email addresses we use bitcoin addresses. If it cost money to send email then the analogy would be even better since I would be charged, or money taken out of my account to send you that email. Similarly, I send you a bitcoin electronically by using a wallet program, just like an email program, to send you a message. In the case of bitcoin however the message is the money! That takes a little getting used to but it’s really very similar.

I’ll be going into transactions in much more detail in future posts but these posts are intentionally short, don’t want to hit the TL;DR (Too Long;Didn’t Read) threshold ;-)