Bluetooth is a short-range wireless communications protocol.
GPS stands for Global Positioning System, and a GPS receiver is a device that indicates your location by triangulating satellite signals.
Bluetooth is commonly used by laptops and cellular phones, and many of them come with it standard. A GPS receiver with Bluetooth capabilities would be able to connect wirelessly to these devices.
One use of such a setup would be to have software on the laptop which might use the GPS data to show your position on a map. This is useful because many GPS receivers are too small to clearly display a map.
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