Put simply it’s electronic money. More and more people are using electronic money already, like when they pay for something with a credit or debit card. No cash is really created for this, its just numbers on the screen; digital money. Bitcoin is one of several other types of digital money collectively called Crypto Currency. Bitcoin was the first.
There will only ever be only 21 million bitcoins. Each Bitcoin can be divided in to into smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin and is called a ‘Satoshi’)
It is not controlled by any central bank or organisation. So you can’t have quantative easing or other bank or government intefearance to alter is value or control how it flows.
It is extremely secure.
It relies on the internet to communicate the transactions.
The value of it is determined by what value the market and the people who find it useful, place on it. The value currently goes up and down wildly as people are only really just realizing its potential and threats. Overall it has currently continued to go up in value over the longer term..
The fees for moving money around particularly international transfers can be tiny compared to what banks charge.
Its easy to use once you have been shown. e.g. If you wanted to send me money you’d just use this image or the numbers and letters to transfer money direct to my wallet no need to involve anyone else.
I’m no expert but my further understanding is;
Digital money that we use daily, is backed up and held by banks and governments, usually with governments offering to back the value of that digital currency (think bailouts when banks fail. That value used to come from countries holding onto stocks of precious metals; gold and silver. SO there was a limit to the amount of money that could be issued. These days money is issued electronically with a complicated set or rules and mechanisms allowing banks and governments to issue money based on systems of loans and promises. The value of the money is determined by the amount of money in circulation, the worth of the country and currency to the INTERNATIONAL market and a select number of people that control such things. (Think bankers, hedge managers, currency speculators, govt. etc). Your value as a tax payer fits into this somehow…. I’m still learning.
Crypto Currency is backed up by the values users place on it in terms of its usefulness, its security and ease of use and access.
If you want to know more try here https://www.coindesk.com/information/what-is-bitcoin/
IF YOU WANT TO GET SOME OF YOUR FIRST EVER BIT COIN YOU CAN GET JUST A FEW QUIDS WORTH HERE…… https://bittylicious.com/
Its actually quite fun to watch them go up and down and once you have a few then all becomes a bit more real. Good Luck, you might make a few £… better odds that playing the lottery I recon!