Bitcoin is a cryptocurrency. It's a decentralized digital currency with no Central Bank or no one in direct control. Bitcoin can be sent from the person to person or peer to peer on the Bitcoin Network without any middlemen.
Bitcoin offers a fair financial system where everyone is on the same playing field.
One of the biggest benefits is that you can move any amount of money anywhere in the world in an instant! There are no banking fees, you don't have to worry about identity theft or any type of delays as in the past when using conventional fiat currency.
The bitcoin price is derived by supply and demand. As more consumers demand bitcoins, the price increases, and when the demand is lowered, the price falls. There only a certain amount of bitcoins in circulation and new bitcoins are created at a certain and decreasing rate, which means that demand must follow this level of inflation to keep the price stable.
Because Bitcoin is still a basically a small market, it doesn't take a hug amount of money into the market to move the market price up or down, and thus the price of a bitcoin is still very volatile.