- Bitcoin is a virtual currency and decentralized payment system invented in 2009 by Satoshi Nakamoto, not owned by any single entity. - Transactions are recorded on a public ledger called the blockchain and verified by network nodes. - There is a limited total supply of 21 million bitcoins that can be divided into fractional amounts. - An Indian government committee may legalize virtual currencies by the end of 2017 which would regulate Bitcoin under existing financial laws.