Bitcoin is a cryptocurrency and a payment system, first proposed by an anonymous person or group of people under the name Satoshi Nakamoto in 2008.
Bitcoin is a peer-to-peer system, where transactions take place between users directly without the need for an intermediary like a bank or payment processor. Transactions are verified by network nodes through cryptography and recorded in a public dispersed 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.
Bitcoin has been criticized for its use in illegal transactions, its high electricity consumption, price volatility, thefts from exchanges, and the possibility that bitcoin is an economic bubble.
Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.
The conclusion is that Bitcoin is a cryptocurrency and payment system that has advantages and disadvantages. It can be used to buy goods and services or traded for other currencies.
Its price is volatile and it consumes a lot of electricity. It has been used for illegal transactions but it can also be used for legal purposes.