Bitcoins is an experimental payment network and a digital currency (not like your debit/credit card) that is created and exchanged independently of any government or bank (means free from financial crisis, depressions and slowdowns). It is a peer-to-peer currency that enables instant payments to anyone, anywhere in the world. Peer-to-peer means that no central authority issues new money or tracks transactions. These tasks are managed collectively by the network.
The currency is generated through a computer program and can be converted into cash after being deposited into virtual wallets. A cryptocurrency to be precise. In some ways, it seeks to replace both federal currencies and a world of payment systems, but it must also play nicely with existing financial systems.
So, if hard currency is like a physical record, then Bitcoin is like an MP3.
Amazing facts : Famous/Rich people talking about bitcoin growth – Please watch the video
Bitcoin began in 2008, at the height of the financial crisis, with a paper published under the pseudonym Satoshi Nakamoto by a mysterious programmer (or programmers) under the MIT license. The smallest unit of the Bitcoin currency (1/100,000,000) has been named “satoshi” in collective homage to his founding of Bitcoin. As of March 2013, more than 10.5 million of the total 21 million BTC had been created. To ensure granularity of the money supply, each BTC unit can be divided down to eight decimal places (a total of 2.1 × 1015 or 2.1 quadrillion units).
Theoretically all Bitcoins will be generated by 2140, with the last one consisting of fractional parts. Bitcoin’s mathematically elegant design ensures that the money supply can increase only at a fixed rate that slows over time and then stops altogether.
The world’s first Bitcoin ATM opened in Vancouver on 1 November. The machine allows “users to exchange their credits of the digital currency for cash and vice-versa.”