WHAT MAKES IT DIFFERENT FROM NORMAL CURRENCIES?
Bitcoin is being used to buy things online. In that sense, it’s like conventional dollars, euros, or pound, which are also traded digitally in Internet world.
WHAT IS BITCOIN BASED ON?
Conventional currency has been based on gold or silver. Theoretically, you knew that if you handed over a pound or dollar at the bank, you might get some gold back (although this didn’t actually work in practice). But bitcoin isn’t based on gold; it’s based on mathematics
Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available, so that anyone can check it.