What is Bitcoin?
Bitcoin is a scarce digital asset with a network of users around the world. Bitcoin exists as a list of transactions in an accounting ledger called the blockchain. An example of a transaction is: 0.25 Bitcoin was sent to address xyz (think of an address as an account number). The owner of the private key (essentially a password) associated with that address has the right to spend 0.25 Bitcoin. Bitcoin is spent by sending it to another address. Bitcoin is an electronic form of money that resists inflation and cannot be manipulated by individuals, corporations or governments.
Because Bitcoin's blockchain is public, anyone can audit it. As Bitcoin is adopted globally this transparency, in conjunction with "know your customer'' regulations, encourages tax compliance and discourages financial crimes.