Bitcoin is a digital currency that is created using computers and are stored electronically. It is decentralized which means no one controls it. Since it is digital you can not touch it nor it has shape or size.Bitcoin can store it in a bitcoin wallet.
Bitcoin price depends on the market. If there are more people who wants to buy bitcoins than those that are selling. Surely the bitcoin value will rise.
Bitcoin are produced and distributed as a reward to people who use computer hardware to solve a mathematical equation. When an equation is solve or a block has been mined all the miners that contributed will have a reward. The higher the mining power the higher the reward given. This process is called bitcoin mining. It can be done solo if you have the right mining rigs like antminer. But most of the miners today mine in groups for faster mining result.
Bitcoin can be use as a currency to pay for services or products online. There are many merchants that accepts bitcoin as payments for their goods. Some hosting providers are now accepting bitcoin as payment for their service. Sample is namecheap.
You can also use it to buy games and there are many online casinos who accepts bitcoin as bets as well. use it to pay for cellphone loads, credit card payment, electrical bill payment, etc.
The best part is when you want to send money to someone. You only need to login to your wallet, put the address that you going to send bitcoin and click the send button. No need to go out to the bank and no bank fees. You can also exchange or sell your bitcoin for fiat currency such as dollar and euro.