What is bitcoin and how does it work?

Bitcoin is a new fad that is being talked about quite often in the recent times. Its value keeps fluctuating quite frequently. But what actually is bitcoin? It is basically virtual money which cannot be kept in the bank. Bitcoin is stored digitally in online wallet apps. Various products and services can be bought with bitcoin. One can send and receive it through digital wallets. This currency is decentralised and there is no central bank to regulate it. In order to ensure the security of transactions, digital wallets use private and public keys. Users can continue their negotiations through the public key and all transaction records are stored and verified in a public ledger known as blockchain.