Bitcoin is a P2P currency. P2P means peer-2-peer. P2P transfer something to someone without any system between those person. Bitcoin is not like the normal money. It doesn't have any owner only a creator: Satoshi Nakamoto.
Bitcoins are in blocks. Each block has a reward. Instead of working to earn normal money like dollars or euros, you mine them. Mining is the process you "break" the blocks of Bitcoins to earn them. To break them you need to use your computer to solve tons of maths operations. When you break that block, you earn the reward. But it's not that easy. As Bitcoin network is very popular, the blocks are not easy to mine. In the beginning the people used the CPU to break it. When it got more difficult, they used the GPU. Then Bitcoin got very difficult and they discovered the ASICs for SHA256. It mines at a great performance and it's not a huge waste of electricity.
But this is very technical. The easy this is:
[BLOCK] -> You break it solving SHA256 -> You earn.
The value of Bitcoins depends of:
-People using it (and investors)
-Difficulty to earn them.
-Number of coins
When you do a PayPal transaction, you need to pay taxes and fees. This means it's controlled by governments. Bitcoin is different. Bitcoin has servers. BUT your currency can't be stolen.
Cryptocurrency it's made with crypto from "cryptography" (similar to encryption) and currency.
It's named cryptocurrency because it uses SHA256 for mining and for the transaction's ID.
They are secure. They are signed each one and can be divided into parts (min. 0.00000001).
They cannot be multiplied. They are signed and there will be only 29.000.000.
There are also other kind of measurement for Bitcoins:
-mBTC: 0.001 BTC
-uBTC: 0.000001 BTC
-Satoshi: 0.0000001 BTC
The minimum transaction without paying high fees is 0.00005500BTC .
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