Bitcoin is a decentralized digital currency controlled by a massive open-source network of people. “Miners” create bitcoins using computers to solve complex mathematical algorithms. The first miner to solve the algorithm is rewarded 25 bitcoins. Only a finite number of bitcoins (21 million) will be created. Bitcoins are then traded, much like any other commodity. Their exchange rate is constantly fluctuating, and the price can be rather volatile. Once you acquire bitcoins, you will keep them in a digital “wallet,” which can be stored either online or offline. Your wallet is like your own private bank, over which you have total control.*
*This is a very simplified explanation of bitcoin, and we suggest you supplement it by doing further research.