What is Bitcoin?
In 2008, Satoshi Nakamoto, (it has yet to be verified if this is a group name or an individual), registered a paper on the next step in the evolution of currency. In 2009, Bitcoin, a digital currency, was born from this concept. Unlike government issued currencies, Bitcoins offer the promise of lower transaction fees than traditional online payment mechanisms. They are also operated by a decentralized authority.
Instead of physical Bitcoins, there are only balances associated with public and private keys. These balances are verified by a massive amount of coordinated computing power and kept on a public ledger with all Bitcoin transactions.