1, The EVM runs on nodes participating in the Ethereum network, and is used to read and execute smart contracts. It encapsulates the smart contract execution process and manages interactions with the host CPU, thus protecting the host machine from any poorly constructed smart contract (malicious or otherwise) that could lead to a detrimental effect on the instance or the network at large.
2, The EVM reads ByteCode.
3, Solidity is a human readable program language that can be used to create smart contracts. The solidity code must then be compiled down to ByteCode before it can be deployed to the network and read by the EVM.
4, Bitcoin cannot run the same kind of complex programs because it is not Turing complete.
5, A Turing complete programming language includes the concept of loops, giving it practically limitless flexibility (while also making it more vulnerable to misuse).