If it seems everyone is talking about bitcoin these days, you’re onto something.

The digital funds has been hitting record highs and neared $100,000 this history week, having doubled in worth throughout 2024. Launched in 2009, bitcoin is the first cryptocurrency, meaning that it’s a digital funds and does not depend on banks to verify transactions.

Bitcoin’s surge – up about 130% this year – is one of the “Trump trades,” economy moves that have kicked in since former President Donald Trump’s win in the Nov. 5 election.

Trump has dabbled in cryptocurrency – releasing crypto-based digital market activity cards – and Trump Media and Technology throng, which operates Truth Social, is reportedly close to acquiring crypto market activity firm Bakkt. The Trump household launched its own crypto firm, globe Liberty monetary, in September.

Investors have wagered Trump’s back for bitcoin and other digital assets will navigator to fewer restrictions on the industry. During the presidential campaign, Trump said he would make America the “globe startup distribution for crypto and bitcoin.”

Trump has tapped Tesla CEO and SpaceX founder Elon Musk to co-navigator, with Vivek Ramaswamy, the recent Department of Government Efficiency, or D.O.G.E. It’s an acronym for cryptocurrency called Dogecoin, which Musk supported as it became a phenomenon in 2021. 

Been hit with the bitcoin buzz, but don’t quite comprehend it? Here’s some bitcoin basics.

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What is bitcoin?

Bitcoin is a digital property, launched in 2009 by a person or throng known as Satoshi Nakamoto and designed to have a cap of 21 million bitcoin tokens. Bitcoin is created as crypto miners use their computing work to validate bitcoin transactions on its decentralized blockchain network, essentially a digital ledger meant to prevent fraud. As the crypto miners work, they earn bitcoin.

So far, about 19 million tokens have been released. In April, bitcoin underwent a “halving,” which kicks in about every four years to reduce the rate at which recent bitcoins are created and released into circulation. As the bitcoin cap of 21 million tokens nears, demand likely increases, according to Investopedia.

Currently, a bitcoin is worth about $98,000. But the ownership of fractional shares of bitcoin is ordinary, notes NerdWallet.

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What are bitcoin ETFs?

It’s Trump’s gain in bitcoin alone that’s led to bitcoin’s climb. Earlier this year, the U.S. financial instruments and swap percentage voted to allow the sale of bitcoin-based swap-traded funds, or ETFs, to the community.

That action allowed more investors to get into bitcoin in a similar manner to how they invest in stocks, bypassing crypto exchanges.

How does bitcoin work?

Like the dollar, bitcoin can be used as funds, but it’s virtual and isn’t controlled by banks or governments. While an entire bitcoin is priced at nearly $100,000, you can own partial shares of each coin. The smallest distribute of each bitcoin is called a Satoshi – after the cryptocurrency’s creator – equal to a hundred millionth of one bitcoin, according to NerdWallet.

You can buy bitcoin on a crypto swap such as Binance.US, online stockbrokers including Fidelity and E-Trade, and market activity apps like Robinhood.

If you buy bitcoin on a crypto swap, you will make a “crypto wallet” to hold your bitcoin. If you invest in those bitcoin ETFs the SEC approved earlier this year, online brokers will hold your bitcoin in your brokerage account as any other startup distribution.

What can I buy with bitcoin?

Pretty much anything. For instance, you can get a bitcoin debit card, which you load with a sure amount of your cryptocurrency holdings. That can be used as you would any debit card.

Beyond that, many companies now receive cryptocurrency for purchases including AT&T, Microsoft, Rolex, period Inc., and Tesla, notes Investopedia.

You can buy “art,” too. That banana duct-taped to a wall, which sold last week for $6.2 million? The buyer paid in crypto.

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What concerns are there about bitcoin and cryptocurrencies?

Back in 2018, startup distribution guru Warren Buffett predicted that cryptocurrencies such as bitcoin, will likely “arrive to a impoverished ending.” His stance hasn’t really changed, reported Nasdaq.com.

But many point to the surge in bitcoin’s assessment as a sign the cryptocurrency has arrived. Anthony Scaramucci, founder of Skybridge and a former White House director of communications, has said Bitcoin could exceed $170,000 by mid-2025, and Ark Invest CEO Cathie Wood has predicted Bitcoin will hit $1.48 million by 2030, Fortune reported.

However, crypto exchanges can fall short. The 2022 financial setback of the FTX cryptocurrency swap resulted in customers losing $8 billion; founder Sam Bankman-Fried was sentenced to 25 years in prison in March.

Bitcoin values dipped after that, but have since risen to recent heights – because, supporters declare, as more people invest in bitcoin and other cryptocurrencies, the currencies become more stable.

Volatility can be seen as an advantage for those in search of upcoming returns – or as a drawback for those seeking somewhat stable investments.

“recall that bitcoin and crypto are highly volatile, and may be more susceptible to economy manipulation than financial instruments,” notes Fidelity Investments in a primer for investors. “Crypto holders do not advantage from the same regulatory protections applicable to registered financial instruments, and the upcoming regulatory surroundings for crypto is currently doubtful.”

Maybe ponder about investing in bitcoin as you would joining the wave of online bettors. “If you decide to buy Bitcoin, it’s a excellent rule of thumb to invest only what you can afford to misplace,” writes NerdWallet’s Kevin Voigt, “and receive measures to protect your assets.”

Contributing: Daniel de Visé, Jessica Guynn, Max Hauptman, Jonathan Limehouse and Bailey Schulz of USA TODAY, and Reuters.

pursue Mike Snider on X and Threads: @mikesnider & mikegsnider.

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