What is a Bitcoin? A Bitcoin is a type of currency. what type of currency? if you asked that question then you are definitely in the right place. A Bitcoin is a type of crypto currency that you cant necessarily hold unless you transfer it over to cash or find a company or place of business that will accept it as a method of payment. In other words you cant hold or fondle it like you would with your typical paper money. Encryption technique's are used in such a way to regulate the generation of units of currency (Bitcoin) and verify the transfer of funds operating independently of a central bank. speculators have jumped into this hot commodity with success and some failure. I'm not saying to get out there and start trading Bitcoin nor am I responsible if you do and you lose everything, this is just explaining what a Bitcoin is! (good luck out there!!!!) How does it work? Well its somewhat simple and if your tech savvy then this is like walking to the mail box ...