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Bitcoin is a digital currency (also known as a cryptocurrency). It is a currency that is created electronically, and has no physical form in the ‘real’ world. It’s held purely as an electronic record.
In other words, bitcoin is ‘internet money’.
There is no central bitcoin bank controlling the currency, issuing new banknotes. bitcoins are produced by computers running special software, owned by people or businesses.
You can transfer bitcoins to other people or businesses, to pay for goods or services, and receive bitcoins in payment for things you supply. You can buy bitcoins as an investment, then (hopefully!) sell them at a profit.
The word bitcoin refers both to the currency, and to the technology that drives it.
The smallest unit of the bitcoin currency is the satoshi, which is one hundred millionth of a single bitcoin (0.00000001 BTC).
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