Bitcoin is a form of digital currency, also known as crypto currency that is created and held electronically. No one controls it. Bitcoins aren not printed, like dollars or euros - they are produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
Bitcoin can be used to buy things electronically. Basically, it is like fiat currency, etc dollars, euros, or yen, which are also traded digitally.
However, bitcoins most important characteristic, and the characteristic that makes it different to fiat currency, is that it is decentralized. No single institution or government controls the bitcoin network. This puts some people at ease, because it means that a large bank can not control their money.
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