Bitcoin is a digital currency that works on a decentralized network of computers using a technology called blockchain. It is a distributed ledger technology that records and verifies transactions between two parties without the need for a third-party intermediary.

Bitcoin allows users to transfer money directly between two parties without having to go through a bank or other financial institution. Transactions are recorded on a public ledger called the blockchain, and each transaction is verified by a network of computers. This makes it virtually impossible for someone to double-spend, or spend the same bitcoin twice.

When a user wants to send bitcoin, they use a digital wallet to store the coins. The wallet holds a set of private and public keys, which are used to create a digital signature that is used to verify the transaction. Once the transaction is verified, the new balance is updated in the blockchain and the transaction is complete.

Bitcoin can be used to purchase goods and services, and some businesses have started to accept bitcoin as a payment method. Bitcoin can also be exchanged for other currencies, such as U.S. dollars. Because it is decentralized, there is no central authority controlling the currency, so it is not subject to government regulations or interference.