Bitcoin is a type of digital money that exists only online. Unlike traditional currencies issued by governments, Bitcoin operates on a decentralized network called the blockchain, which keeps track of all transactions in a secure and transparent way. People can use Bitcoin to send or receive value across the world quickly, without the need for banks or intermediaries. It is created through a process called mining, where computers solve complex problems to validate transactions and maintain the network. Bitcoin is known for its limited supply—only 21 million coins will ever exist—which can make it appealing as a long-term store of value.