Bitcoin is a digital currency that operates on a peer-to-peer network and is decentralized, meaning it is not controlled by any one person, organization, or government. Instead, it is powered by a global network of computers and is secured through cryptography. It allows users to transfer funds to one another without the use of a middleman or financial institution. Bitcoins can be used for buying goods and services online and in some stores, but their primary use is as a store of value and investment.