When swinging a bucket of water in a circular motion, the water remains inside due to the centripetal force generated by the bucket's acceleration, which exceeds the force of gravity acting on the water. This centripetal force is necessary to keep the bucket moving in a circle and prevents the water from spilling out, as the bucket accelerates downward faster than gravity can pull the water down. The discussion also touches on the behavior of an object, like a piece of wood, in the water during this motion, suggesting it would maintain its level due to similar principles of acceleration. The analogy of a rollercoaster is used to illustrate how objects behave under changing forces in motion. Overall, the principles of centripetal force and acceleration explain why the water stays in the bucket while being swung around.