Bitcoin in simple terms is a digital currency. It is a decentralized currency which means it is not controlled by any government or bank. The currency is transferred between peers and does not require any intermediary for transaction. Bitcoin was invented by an anonymous person or group named Satoshi Nakamoto.
Bitcoin is created through the process of mining by solving complex mathematical problems. The computers which are used to solve these problems are called miners. They are rewarded for their work with new bitcoins. T
he bitcoins are stored in the wallets of the miner. The process of mining is not that easy. It requires high level of computation. Only a few people with supercomputers can mine bitcoins. Bitcoin is a peer to peer currency. It means that bitcoin can be transferred directly between two peers. It is not required to be transferred through an intermediary like a bank or a money transfer service like Paypal.
Bitcoin is like a real currency. It has a monetary value. It is used for buying goods and services. Bitcoin is created through a mining process. It used to be able to be mined on ordinary PC processors, but now it’s only viable with expensive ASIC machines built for that reason alone.