Bitcoin is a decentralized digital currency created by unknown person or group called Satoshi Nakamoto. It allows for peer-to-peer transactions without an intermediary. Bitcoins are produced through mining, where computers validate transactions by solving complex math problems and are rewarded with new bitcoins. The total number of bitcoins is limited to 21 million. While bitcoin offers advantages like low fees and accessibility, it also faces criticisms around its energy use and potential for criminal activity. Whether to invest in bitcoin depends on one's risk tolerance since its value is volatile without an underlying asset.