But how does bitcoin actually work?

Bitcoin is like a special kind of money that lives on the internet and doesn’t need a bank to work.

Imagine you have a piggy bank full of coins, but instead of keeping them at home, you let everyone know how many coins you have, and anyone can see it. That’s like how bitcoin works: it's a list of who has how many coins, and this list is shared across the internet.

When someone wants to send you bitcoin, they're like your friend telling you they’re giving you some coins in exchange for something. But instead of using cash, they do it with a special message that everyone on the internet can check, kind of like writing a note saying, “John gave 5 coins to Sally.”

To keep things fair, people use something called proofs, like when you show your teacher you did your homework. These proofs help make sure no one can cheat by claiming they have more coins than they actually do.

Everyone who helps check these proofs gets a little reward, just like how you might get a sticker for helping clean up the classroom. And that’s how bitcoin keeps working, fairly and without anyone needing to trust a single person or bank.