Bitcoin is a global payment network, which uses electronic “coins”. People store the coins online, or on any device they choose, and can use them to make payments just like they would with a credit card. The main difference is that anyone can have a Bitcoin, no bank account needed, they are much like cash in many ways. Just like with cash, there are no charge backs and no hidden fees.
Bitcoin is similar to email in the 90’s (when email was gaining popularity). Just as email removed the need to send a letter in order to communicate in writing, Bitcoin removes the need to send a physical good (a dollar bill or bit of gold, ect.), with the ability to instantly transfer value digitally and over great distances.
How is it done? As business owners, the importance of Bitcoin is understanding how it fits into our operations, and how it can be used to increase sales and build loyal customers. However, If you want explanation of what is happening under the hood, you can find that here.