What is Bitcoin?
Bitcoin is a software-based online payment system created, by either a person going by Satoshi Nakamoto or by a group using said name, in 2008 and introduced as open-source software in 2009.
Payments are recorded in a public ledger using its own unit of account, which is also called Bitcoin Blockchain. Payments work peer-to-peer without a central repository or single administrator, this is why the coin was dubbed "decentralized virtual currency".
Because Bitcoin is not backed by any physical commodity the value of it is based on the demand and the willingness of people to pay. Thus, Bitcoin acts much like the stocks of companies on a stock exchange. Currently, the value of Bitcoin is:
(see chart below)
How is it Created?
Bitcoin is created using computers in a means known as "mining".
Bitcoin Chart via 'BigTerminal'