Key cryptocurrency terms explained, from Bitcoin to blockchain
By Muhammad MubashirPublished On 06 Feb 2026
Bitcoin's price falling below $70,000 (£51,679) to hit a recent low has thrust the buzzy world of cryptocurrencies back into the spotlight.
The world's most valuable digital currency makes headlines when it soars to all time highs or sinks to new lows - as it has in early February with a return to prices not seen since before Donald Trump was elected as US President for a second time.
But the crypto market as a whole abounds with confusing terms like ETFs, blockchains and stablecoins, that can make the topic somewhat tricky to navigate.
Worry not.
If you're hearing these for the first time, or could do with a refresher, here are a few key terms and what they mean.
Bitcoin
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.
Blockchain
Blockchain is the technology underpinning all cryptocurrencies, and many related products like non-fungible tokens (NFTs). In essence, it is a virtual spreadsheet on which all the buying and selling of crypto is recorded. They are arranged in blocks linked together in a giant chain - hence the name.
Every cryptocurrency transaction is individually recorded onto the blockchain by a huge network of volunteers verifying its authenticity by using computer programmes.
The incentive to do this for Bitcoin's network is that the first person to validate transactions is rewarded in Bitcoin. This potentially lucrative process, known as mining, is also controversial because of the incredible amount of energy used as people the world over race to be the first to successfully update the blockchain.
Bitcoin 'halving'
The blockchain is sustained by rewarding so-called "miners" - whose job it is to validate transactions - by paying them with the cryptocurrency.
However, unlike some other digital currencies, there is not an infinite supply of Bitcoins. The amount that can be mined is capped at 21 million, and most are already in circulation.
So roughly every four years - or when the Bitcoin blockchain reaches a certain size - the number of bitcoins rewarded to those who successfully validate transactions is cut in half. The most recent Bitcoin "halving" (or "halvening") event took place on 20 April 2024, reducing the reward for miners from 6.25 bitcoins to 3.125.
This ensures Bitcoin's supply is drawn out for longer while demand, in theory, goes up over time. But with fewer rewards for miners, it can also lead some to consider whether it is financially worthwhile for them to continue the costly operation of running their powerful computers.
