Bitcoin 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.
NOTE: WARNING: Investing in Bitcoin is a risky endeavor. It is highly volatile and can fluctuate greatly in value over short periods of time. Before investing, you should thoroughly research the risks and rewards of investing in Bitcoin and other cryptocurrencies. Additionally, you should use a secure, reputable app or platform to invest in Bitcoin and make sure you understand the fees associated with it. Investing in Bitcoin should never be done with money that cannot be lost.
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.