It is a digital wallet to store, send and receive bitcoin. Instead of storing your money as a real world wallet does, it saves your public and private keys which in turn helps you send and receive money.
Public and Private Keys?
Take a vending machine as an example, anyone can put their money inside the machine, but they can’t take out the money because they don’t have the key. The only person who can take out the money is the owner of the machine who has the key. The vending machine is the public address which anyone uses to send money to you. You are the machine owner, and the key that he is carrying is your private key. Using this private key only you can access your money and do what you please with it.The public key is the address that anyone can use to send you the money, while the private key is what you will use to send money to anyone else. Remember, ONLY you should know what your private key is, otherwise anyone can use your wallet to send your money to any other addresses.
In November 2008, Satoshi Nakamoto published a 8-page white paper explaining the new electronic cash system “based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.”. This is how bitcoin was created. Satoshi himself disappeared off the grid in 2011. The identity of Satoshi Nakamoto was in question from the very beginning. Speculation is that he took one million bitcoins with him when he disappeared.
Bitcoin is a new kind of money and payment system. It uses peer-to-peer technology to operate without a central authority or banks. Transactions and the issuing of new bitcoins are carried out collectively by the network. Bitcoin is open-source, nobody owns or controls it and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.
Built into the bitcoin protocol from the beginning was a 21 million limit to the number of coins that will ever be created. Without a limit to the possible number of bitcoins, they would become like fiat money and decrease in value as more and more and more bitcoins were created. With a limit on it, bitcoin should increase in value.