While many may struggle with the finer points of crypto, pretty much everyone has heard of its most famous product: Bitcoin. But what actually is it?
Bitcoin is a cryptocurrency, which is to say a type of digital currency. Unlike traditional currencies, Bitcoin is not controlled by centralised financial institutions.
This makes it popular for people who think decentralisation can bring financial freedom, but it also makes it extremely volatile with it rising and falling in value at the whim of Bitcoin buyers and sellers.
Donald Trump has pledged to make the US the “crypto capital of the world” – backtracking on his previous claim that Bitcoin was a “scam”.
Its price topped a much-awaited threshold of $100,000 in December 2024, then rose to $120,000 in July 2025 as US politicians prepared to debate bills to regulate digital assets.
But Bitcoin has been known to plummet in value just as quickly as it spikes.
On 5 February 2026, it dipped below $70,000 – later falling lower to $67,000 – to effectively wipe out all the value it accrued since Trump was elected in November 2024.
