<human>:  How do Bitcoin and Cryptocurrencies work?
<bot>: Bitcoin is a cryptocurrency. It is a decentralized digital currency that uses cryptography to control the creation of new units and verify the transfer of funds. It is a peer-to-peer network. The network is made up of users who use their computers to process transactions and create new units of the currency. The currency is stored in a digital wallet, which is a secure digital storage system that allows users to store, send, and receive bitcoins.