Bitcoin is a digital currency that was created in 2009 as an alternative to traditional currencies like the dollar and euro. It uses encryption techniques to regulate transactions and generate units of currency independent of any central bank. The document discusses bitcoin as a new form of digital gold that can be used for payments and has the potential to decrease reliance on traditional currencies due to its high return on investment and protection against inflation. It also lists examples of other cryptocurrencies like Litecoin and provides a brief history of bitcoin's value over time.