From Bitcoin to XRP: Key cryptocurrency terms and what they mean

July 14, 2025

Bitcoin recently reached a new all-time high of $120,000, boosted by President Trump's pro-cryptocurrency stance and pending US legislation on digital assets. The article explains key cryptocurrency terminology including blockchain technology, crypto exchanges, wallets, and various digital currencies beyond Bitcoin such as Ethereum and meme coins. While Bitcoin's price has surged dramatically, the article emphasizes the volatility of cryptocurrencies, noting that prices can plummet as quickly as they rise, and explains how the recent "halving" event affects Bitcoin mining rewards.

Who is affected

Cryptocurrency investors and traders
Bitcoin miners facing reduced rewards after the April 2024 "halving" event
Investment management firms like Blackrock and Fidelity entering the Bitcoin market through ETFs
Financial institutions interested in XRP for cross-border payments
General consumers trying to understand cryptocurrency terminology
Regulatory bodies scrutinizing cryptocurrencies

What action is being taken

US politicians are preparing to begin debating bills that would regulate digital assets
Bitcoin miners are continuing to validate transactions on the blockchain despite reduced rewards
Investors are trading Bitcoin on exchanges, with the price recently reaching $120,000
Investment firms are utilizing newly approved spot Bitcoin ETFs to invest in cryptocurrency
Cryptocurrency transactions are being recorded and verified on blockchains by networks of volunteers

Why it matters

Bitcoin's price movements reflect growing mainstream interest in cryptocurrencies
Regulatory developments in the US could significantly impact the cryptocurrency market
The capped supply of Bitcoin (21 million) creates scarcity while the halving mechanism extends the distribution timeline
Cryptocurrency technologies like blockchain could potentially transform financial systems by enabling decentralized transactions
The extreme volatility of cryptocurrencies presents both opportunities and risks for investors
Energy consumption from Bitcoin mining raises environmental concerns

What's next

No explicit next steps stated in the article

Read full article from source: BBC