To oversimplify:
Bitcoins are a virtual currency with key attributes akin to gold.
They rely on a mathematical process which requires a consistent amount of computing power to calculate the next “coin” which is then registered with a central recognized authority. (This like the consistent amount of work required to mine & mint an ounce of gold.) They can be possessed in an anonymous manner assuring no copying occurs. Being based on mathematics, requiring hard work to create, supporting anonymity, and - best of all - having nothing to do with governments, it amounts to viable digital libertarian cash. Maybe hard to believe, but if you learn how it works you will be convinced.
Of late, the value of one bitcoin was about $250. That’s real world money.
Alas, like other hard currencies it too suffers inflation and bubbles. Yesterday the value crashed 70%, reason unclear.
For all the reasons to not like it, know it and get used to it. Just like tablets and e-books and other technologies are suddenly dominating, independent e-cash will someday be viable and commonplace.
No, sorry, bitcoins are not akin to gold. Gold is tangible, exists in the real world, and has served mankind as money for thousands upon thousands of years.
Bitcoins are nothing but another fiat currency created arbitrarily in the mind of computer scientists. They have zero intrinsic value (even less than paper currency, because paper at least has some value). The only reason people assign value to them is that some businesses accept bitcoins for payment. However, said companies almost immediately will convert the received bitcoins to dollars, thereby demonstrating that bitcoins fail one of the chief attributes of money: They are not a store of value.
Because bitcoins are not widely accepted, they also fail another test of legitimate money: They are not a widely-used medium of exchange.