At 0.39 into this video is a fantastic explanation about bitcoins.
http://thoughtcatalog.com/derek-marshall/2014/01/7-quick-easy-things-you-could-do-to-appear-significantly-more-interesting/So save you the time here is the quote,
If you buy a Bitcoin, which is worth, like, 214 dollars... American... without tax... that Bitcoin is sent to all these little guys... in their little tiny world... in the Internet... and they hold on to them, and then they use YOUR Bitcoins to buy whatever YOU want... for you.