I am not sure about the exact first time that i heard about bitcoin. Maybe it was in the google.

Satoshi Nakamoto is the inventor of bitcoin.Bitcoin is a digital cryptocurrency which is decentralised and is not regulated by any central authority.

Here are just a few of the many factors behind Bitcoin's volatility:
1.Rate of acceptance is hampered by bad media
2. Bitcoin's perceived value fluctuates
3. Too much variance in perceptions of Bitcoin's store of value and method of value
4. Little option value to large holders of the currency
5. Bitcoin and foreign direct investment in countries with high inflation.

Bitcoins are called BTC in short.Bitcoin is a digital currency.

There is different wallet for bitcoin.I use coinbase as my wallet.Because it is easy with less transaction fees.

I don't think bitcoin will die because of China because only China has banned its citizens from trading in them but many nations have been supportive. For example
Japan passed legislation recognising bitcoin as a legal payment method earlier this year. In Russia, where the initial reaction was mixed, orders have now been issued for a legal framework.

Both are currencies.Bitcoin is an electronic or digital currency & real money is a local currency.
Bitcoin is decentralised and has no central authority controlling it but real money is centralised and has central authority to control it.

The beauty of this bitcoin is that if you receive a bitcoin from another, you can be as sure of the payment as you would on receiving physical currency notes, with the same anonymity ascribed to it. No one need know if your neighbour spent 2 bitcoins this morning to buy gold, but the transaction is recorded for posterity.