Bitcoin is a digital currency, just like the US Dollar, Canadian Dollar, Brittish Pound, Japanese Yen, etc. Wait!!! Those currencies are not digital – I have paper money physically in my hand. Yes, there is SOME paper money created (called the M2 money supply), but the vast amount of currency you work with is digital; a number in a bank account.
Bitcoin lives on the bitcoin blockchain. It never leaves the blockchain at any time.