What, exactly, is Bitcoin?
Bitcoin was invented, and is used, as a form of digital currency. It is held through electronic means and created through electronic means. There is no central control over Bitcoin and the currency cannot be printed out like other forms of money.
Bitcoin is produced by the people, for the people, in all regions of the world. Bitcoin is also considered to be the first and most prominent example of "cryptocurrency", a monetary category that is experiencing continuous growth, with no end in sight.
It is different from most forms of conventional currency because it can be used electronically, without ever being able to be touched in a tangible sense by the consumer. It is decentralized, which means that no single institution wields any form of control over its usage. For those who do not wish to allow banking institution to control their money, this comes as a major relief.
One of the greatest benefits to using Bitcoin as currency is that there is no chance of anything, or anybody, creating unlimited Bitcoins. Only 21 million can be created by each individual miner. The Bitcoins can then be divided into much smaller parts, and the smallest unit of bitcoin currency is the one hundred millionth.
Naturally, the next most important question that needs to be answered about Bitcoin is a simple one...