Bitcoin is a digital currency that can be obtained and then exchanged between any two parties, from anywhere, at anytime to facilitate a transaction. Bitcoin is decentralized from any financial institution that controls payment transactions between parties. By cutting the middle man out (financial institutions) this allows for more efficient peer to peer transactions at lower costs and faster processing times without compromising security.

To use Bitcoin you need a wallet. A wallet is the storage mechanism that holds your Bitcoin and can either be physical or digital. Transactions between parties happen by transfering of Bitcoins from one wallet to another.

Bitcoin transactions get verified and added to the public ledger, known as the blockchain. It takes large computing power to solve proofs that validate transactions and allow them to be added to the blockchain. For this reason, special mining machines with large hashpower capacity (ability to solve proofs) were created to efficiently execute these tasks. Miners Successfully processing work are rewarded accordingly by the issuing of new Bitcoins into the circulating supply.