A "wallet" is a virtual "purse" in which you can store, receive and send Bitcoin and other cryptocurrencies through a program that can be downloaded from the internet for free. Depending on the type of wallet, it can be used on desktop, mobile phone or tablet. However, storing Bitcoin and other cryptocurrencies is the safest in a hardware wallet that is not connected to the internet.
Even if you say colloquially that you have your coins in a wallet, that is not entirely correct. Bitcoin is always on the blockchain, the wallet merely contains the private key, which points to the Bitcoin in the blockchain.
Many of the benefits of Bitcoin have already been described in the previous text. To emphasise these benefits again and to dispel any doubts, here is a comparison to fiat money.
“Fiat money" is legal money issued by a state authority without intrinsic (internal) value. It serves as a medium of exchange and is the opposite of commodity money (for example, silver, gold). Commodity money has an intrinsic value inherent in its material properties.
Suppose you want to borrow money from the bank. You decide on a loan with a term of ten years. The bank credits a sum of €10,000 to you and the following happens in the background: There is no actual transaction made from A to B, the bank does not get the €10,000 from a larger bank. It also does not generate new paper money. After only numbers are entered on a display, the balance changes and confirms the "receipt" of the loan to someone. Thus, the next ten years you pay back money that was never printed but only digitally generated.
In the case of Bitcoin, it isn’t possible for a third party to type something, to change or to create anything. Bitcoin is not a tangible good, but it is limited and it is impossible to change it. The properties of blockchain technology ensure a cryptocurrency is highly secure. The way you handle your assets is entirely up to you and there is no need for a third person or intermediary authority to have additional access to your private data. You have access to the Bitcoin payment system 24/7 and can send money anytime, anywhere in the world - interest-free and in minutes.
All participants in the Bitcoin network are organised in a peer to peer network and are on fully equal terms. Since there is no central monitoring authority, nobody can be excluded from the Bitcoin network. The Bitcoin network manages and mines bitcoins. At the same time, the network is a payment system in which transfers are made and documented.
The Bitcoin system and its function are incorporated in the source code and can be viewed by anyone. Modifications by a single participant in the network must be accepted by the majority of all participants by consensus. That is what Bitcoin security is based on because you would have to convince the majority of users in the world to make certain changes.
For this reason, nobody can simply change properties of the network. Development of the total money supply is predetermined in the source code and thus cannot be altered. This measure is a hedge against possible inflation (devaluation).