Huge can of worms you just opened up hopefully I can close them back up.

-Currency is produced via mining or POW which is complicated math algorithms happening every 10 minutes. Every 10 minutes a block winner is chosen and they receive the reward (currently 12.5 bitcoins)
-The blockchain keeps track of all the transactions with the help of full nodes worldwide (which also keep track of all transactions occurred)
-Everything is safe and secure because these miners use their computing power to make the chain immutable (would cost billions to change a small part of the chain)

That is Bitcoin in a nutshell, although there are many little things here and there that make the network what it is. If you have any specific questions, shoot and I will do my best to answer them as well.

As a new user, you can simply start using Bitcoin without having to understand the technical details. After you install the Bitcoin wallet on your computer or mobile phone, it automatically creates your first Bitcoin address and you can create more addresses whenever you need them. You can give your Bitcoin address to your friends so they can pay you or vice versa. Very similar to how email works, except that the Bitcoin address can only be used once.

If I can give you some advice, I would suggest that you use some Spell checker, before you post something on the forum. It is very difficult for us to figure out what you are trying to ask.

1. Bitcoin is not attached to a state or government, so it does not have a central issuing authority or regulatory body, basically, that means there is no organization, deciding when to make more bitcoins

Answer : Yes, it was developed that way on purpose. Nobody should manipulate currencies apart from market forces. The software introduced by Satoshi Nakamoto and given to the world, will manage the supply at a predetermined rate. So everything is predictable and transparent.

2. keeping track of where they are, so how does bitcoin work as a currency ?


Answer : The Blockchain that are stored on a decentralized network, keep track of all bitcoins that are produced and moved from one address to another. <simple explanation>

Basically Bitcoin is a digital journal that keeps track of who has Bitcoin. Banks in general also have journals like this to record customer A has how much money. What distinguishes Bitcoin is that digital journals are not stored in a particular agency or party.
In Bitcoin, this digital journal is saved to each person, or anyone who wants to own and assist the transaction process so when a digital journal breaks down then you have a backup of all other users. No one party controls this journal, everyone participates, but since everyone can have this digital journal they can know the amount and every transaction that takes place. So let's say today you want to be a maintainers, then you can request a journal entry to the network and download it, you can then see its contents.

The core principle of Bitcoin states that it is a payment system that relies on the decentralization principle. There is no single authority controlling Bitcoin so anyone using it is the co-owner of the whole system. Price is determined by the law of demand and supply so if you are sending some amount of Bitcoin to someone else then you both are supposed to consider the current market price of Bitcoin while conducting the transaction, you can take the help of sites like preev.com to find the current market price. The creation of Bitcoin takes place through a process called a mining and you will find more information about it on this forum, Google or YouTube.

Bitcoin is a virtual coins for their value.ith no need for banks to move and store the money. You can use your bitcoins to buy materials and services through internet. They traded from a person wallet to the one who will be traded.

There are no people who control bitcoin,it is created by people ,and the price depends on people.But soon the state will come up with its own currency

I do not believe in the success of such projects. Cryptocurrency is not a panacea for bankruptcy. The anonymity of cryptocurrencies allows attracting investments to the country. If not anonymity, then lost all meaning. This will be an attempt to disguise Bank accounts as cryptocurrency. You can't be half pregnant.

Sadly, Bitcoin is not really taken or used as a currency since it is decentralized and volatile. It is popular as an asset, an investment where in you risk or put your money into so you can earn some profit through time. I will consider bitcoin as a currency if the transacting bitcoin is mainly used for payment or buying stuff online, if bitcoin is accepted by the governments of the world and if the price becomes stable.