Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer bitcoin network without the need for intermediaries.

Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

To make money on Bitcoin, you can either mine it yourself, or buy it from somebody who has mined it. Mining involves verifying transactions on the Bitcoin network and then adding them to the blockchain.

This requires specialised hardware and consumes a lot of energy. As a result, miners are rewarded with bitcoins for their efforts.

If you don’t want to go through the hassle of mining, you can simply buy bitcoins from one of the many exchanges available online. Once you have your bitcoins, you can use them to buy goods and services, or trade them for other currencies.

Bitcoin is still in its early stages, and it is unclear whether it will be successful in the long run. However, if it does continue to grow in popularity, it could become a very profitable investment.