Bitcoin
Bitcoin, the first decentralised cryptocurrency, was introduced in 2008 by an individual or group under the pseudonym Satoshi Nakamoto. It operates on a peer-to-peer network without central oversight, utilising blockchain technology—a public distributed ledger—to record transactions. Consensus is achieved through a proof-of-work mechanism known as mining, which involves solving complex mathematical problems to validate transactions and add new blocks to the chain. The total supply is capped at 21 million bitcoins, with approximately 19.6 million in circulation as of early 2024.
Market performance
As of May 29, 2025, Bitcoin is trading at $108,220, having reached an intraday high of $109,057. The cryptocurrency has experienced significant growth, surpassing the $100,000 mark for the first time in December 2024, driven by increased institutional investment and optimism over a supportive regulatory environment. The 52-week range for Bitcoin spans from $49,365 to $112,345.
Adoption and regulation
Bitcoin's adoption has expanded globally, with El Salvador becoming the first country to recognise it as legal tender in September 2021. However, the Bitcoin Law was substantially rescinded on January 29, 2025, after a deal with the International Monetary Fund to remove Bitcoin's official status in return for a loan.
In the United States, cryptocurrency has gained political attention, with President Donald Trump's administration expressing support for digital assets. Trump's pro-crypto stance has encouraged businesses to consider Bitcoin as a treasury reserve asset, challenging traditional financial instruments.
Institutional involvement
Institutional interest in Bitcoin has surged, exemplified by the launch of spot Bitcoin exchange-traded funds (ETFs). BlackRock's spot Bitcoin ETF reached $1 billion in assets within the first four days of trading, marking a significant milestone in mainstream financial adoption. Additionally, futures and options contracts on Bitcoin are available through platforms like the CME Group, providing investors with tools to manage cryptocurrency exposure.
Challenges and criticisms
Despite its growth, Bitcoin faces challenges, including regulatory scrutiny and environmental concerns. The energy-intensive nature of Bitcoin mining has drawn criticism for its environmental impact. Moreover, the pseudonymous nature of transactions has raised concerns about their use in illicit activities, leading some countries to impose restrictions or bans on their use.
Bitcoin continues to be a focal point in discussions about the future of finance. Its integration into traditional financial systems, increasing institutional adoption, and evolving regulatory landscape suggest a trajectory toward broader acceptance. However, its volatility and the ongoing debates over its environmental and regulatory implications indicate that Bitcoin's path forward will be closely watched by investors, policymakers, and the public alike.
