Bitcoin is the world’s first form of digital currency created and held electronically. Bitcoin is decentralised, which means that no single institution controls it. Bitcoins are produced by people and businesses, running computers all around the world, using software that solves mathematical problems.
Bitcoin can be used to buy things electronically and can also be traded online with other digital currencies as well as with traditional (or fiat) currencies on exchanges such as Coindirect.
Many online stores accept bitcoin in the same way they accept credit cards. This, obviously, depends on the country you live in.