The concept of bitcoin in layman's terms

I will try to simplify it as much as possible.

Bitcoin doesn’t exist in the real world. That’s the real bummer. It’s funny. They don’t exist anywhere. Not on any server computer or not in your hard drive. You can’t point to something and say “This is my Bitcoin”. It is just a fairy dust.

here it goes :-

Bitcoins exists as records of transactions between different addresses that are stored in a publicly distributed ledger called the block chain. In case a traditional centralized banking system, the apex bank holds the ledger of all the currencies it has issued. In case of Bitcoin, this digital ledger, is vastly distributed across all the nodes in the network that is participating in mining the Bitcoin. That ledger, is known as the block chain. You perform a transaction, it gets updated to every block chain that exists in the network. Hence, block chain is a technology that is decentralized. Anything that happens in the block chain is a function of the network as a whole.

So your wallet doesn’t actually hold the Bitcoin. Your wallet stores the secure keys that enables you to access your Bitcoin address in the network. Does that make sense?

If not, try to think of it like this. Your wallet stores the key with which you can open your safe. Yes. The safe. That’s where your money is stored.