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Bitcoin is worldwide digital cryptocurrency developed by Satoshi Nakamoto in 2009. You can use it as a payment method in many places. It uses the Internet for sending money, so you can send bitcoins to anybody in the world!
You can buy or sell them in many Bitcoin Markets and exchange for other (crypto)currencies.
The most important thing about Bitcoin is it`s decentralization. When it comes to real paper money, Central Banks control it and can print it more. In Bitcoin World there will be no more than 21 million of BTC. That means no one can "make" more Bitcoins.
Satoshi is the smallest fraction of Bitcoin. 1 satoshi is 0.00000001 BTC. But in the future, if there will be a need, 1 Bitcoin can be split in even smaller fractions. Most of Bitcoin faucets rewards users with satoshis.
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