Bitcoin is a digital currency where new bitcoins are "mined" by computers competing to solve complex math problems. This mining process adds transactions to the blockchain, a public record of all bitcoin transactions that is maintained by consensus among users. While bitcoin saw major hype last year, the mining arms race has intensified and the glory days of mining may already be over as it becomes increasingly difficult to earn new coins. A bitcoin wallet is simply an application that allows users to access their coins on the blockchain.