What is Bitcoin?

Bitcoin is widely recognized as the pioneering cryptocurrency and continues to hold the top spot in terms of name recognition and market size. Its market capitalization is roughly $1.33 trillion, putting it far ahead of second-place Ethereum with about $233 billion in market cap.

At a basic level, Bitcoin functions as a decentralized digital currency. Instead of relying on a central authority like a bank or government, it runs on a peer-to-peer network of computers. This design lets people transfer value straight to others without using a traditional financial intermediary.

Many investors turn to Bitcoin as a potential hedge against inflation in the U.S. dollar or as a way to branch out beyond conventional investments. Over the past decade, it has posted stunning gains, often outperforming major stock indexes, which has played a big role in its popularity.

At the same time, Bitcoin shares a key trait with other cryptocurrencies—it can be extremely volatile, with frequent and sometimes dramatic price changes.

Bitcoin price history

Since it was introduced in 2009, Bitcoin has been highly volatile and often headline-grabbing. One early milestone in its history involves developer Laszlo Hanyecz, who famously spent 10,000 Bitcoins on pizza. Today, those coins would be valued at more than 668 million dollars.

Over the last decade or so, Bitcoin’s price has climbed more than 15,000%. This tremendous growth comes with a trade-off, as cryptocurrencies are known for their unpredictability. Bitcoin has undergone severe pullbacks—sometimes dropping tens of thousands of dollars within months—as well as dramatic recoveries. At the close of 2025, it was trading roughly 30% below the all-time high it hit that very October.

What affects Bitcoin’s price?

Several different dynamics can move Bitcoin’s price up or down, including:

• Investor speculation: Like many speculative assets, Bitcoin’s short-term price is heavily driven by trader psychology and buzz. In the near term, prices usually reflect investor beliefs and trading activity more than anything else.
• Adoption by major companies: When large corporations embrace Bitcoin or broader crypto technology, it can help support further growth. For example, Bitcoin’s price rose after companies such as Tesla and Ferrari announced plans to accept Bitcoin as a payment option.
• Economy: Bitcoin doesn’t track inflation figures or central bank decisions in the same way many traditional investments do. Still, it often benefits when the U.S. economy is strong, because people who feel financially secure may be more willing to allocate money to alternative assets that are a bit riskier—like crypto.
• Regulatory developments: As a relatively young asset class, cryptocurrency is still in the process of being fully regulated. New rules or enforcement actions can either instill confidence or create fear. Both cases can significantly affect Bitcoin’s price.

How to buy and invest in Bitcoin

If you’ve decided to invest in Bitcoin, there are multiple ways to do it. Here are some of the main options.

Buy Bitcoin on a cryptocurrency exchange

The most straightforward route is to buy Bitcoin directly. You set up an account with a crypto exchange, connect it to your bank, and then use your deposited cash to buy Bitcoin.

Invest in Bitcoin ETFs

For those who prefer a more traditional investment vehicle, Bitcoin exchange-traded funds are an alternative. A Bitcoin ETF holds Bitcoin on behalf of its shareholders, and its shares trade on standard stock exchanges. This option lets you skip the process of managing your own crypto wallet and can reduce the risk of losing access to your funds because of a password mistake or wallet issue.

Buy crypto stocks

Investors who don’t want to buy Bitcoin directly can also consider stocks of companies in the crypto space. These might include tech companies that support blockchain technology, public crypto exchanges, even payment processors. Because these companies may earn revenue from Bitcoin-related activity, their share prices can offer indirect exposure to Bitcoin’s performance.

Open a Bitcoin IRA

For retirement-focused investing, a Bitcoin IRA is another great option. Like a standard IRA, it’s a tax-advantaged account with similar contribution limits and tax rules, but it lets you allocate some of your retirement savings to Bitcoin and other cryptocurrencies as alternative investments.

Bitcoin vs. other cryptocurrencies

Bitcoin might be the best-known name in crypto, but it is not your only choice. When weighing where to put your money, you may want to compare it with a few other major coins.

• Ethereum: Ethereum is currently the second-largest cryptocurrency by market cap. Unlike Bitcoin, which was designed mainly as a form of money, Ethereum was built as a decentralized computing platform and is widely used for running applications and smart contracts.
• Tether: Tether is a stablecoin, meaning that its value is directly tied to another asset—in this instance, the U.S. dollar. Its peg typically keeps price movements smaller than Bitcoin’s, but that also means there’s less opportunity for outsized growth.
• XRP: XRP is a digital asset created to make sending money across borders faster and cheaper, focusing specifically on international transfers with low transaction costs.

Crypto coverage from Fortune

See our newsroom’s recent coverage of what’s been happening on the cryptocurrency scene:

Is it a good time to invest in Bitcoin?

When compared with long-standing blue-chip names such as Procter & Gamble or Walmart, Bitcoin is still a newcomer. That makes predicting its long-term behavior challenging. But its recent history has been impressive. As more companies start accepting Bitcoin as a payment method, its price may get a further boost, and as the asset matures, it might eventually see somewhat smoother price movements.

However, Bitcoin should not be treated as a sure bet. It’s wise to invest only money you can afford to have tied up and to ensure your broader portfolio is diversified, so other investments can help offset Bitcoin’s volatility.

For most people, Bitcoin is better viewed as a long-term, higher-risk holding than as a quick trade. It is not ideal for investors who are uncomfortable watching large price swings. But if you plan to hold it for years and keep it as a piece of a balanced portfolio, investing in Bitcoin could make sense for a portion of your overall strategy.

Frequently asked questions

Key Takeaways:

• Anthropic added ID checks for Claude users in April 2026, gating some features.
• Persona handles verification; Anthropic says no ID images are stored on its systems.
• OpenAI and Google Gemini lack similar rules, raising competition questions.

Anthropic Introduces Government ID Verification for Some Claude Users

The change appeared in a help center update published during the week of April 14–16, 2026, and is not applied across all users. Instead, prompts surface in specific cases tied to higher-tier plans, advanced capabilities, or internal safety reviews.

According to Anthropic, the goal is to limit abuse, enforce platform rules, and meet legal obligations. The company frames the rollout as part of routine integrity checks rather than a universal onboarding requirement.

Users who encounter the prompt must provide a physical, government-issued photo ID and complete a live selfie scan. Anthropic details that the process typically takes less than five minutes and requires a camera-enabled device.

Accepted documents include passports, driver’s licenses, and national ID cards. Digital copies, screenshots, or temporary paper IDs are rejected, along with non-government credentials such as student or employee cards.

The verification workflow is handled by Persona, which processes ID data on Anthropic’s behalf. Anthropic says it does not store the underlying ID images on its own systems. Instead, Persona retains the data under contractual limits, while Anthropic maintains access to verification results when needed for account review or appeals.

The company states that all data is encrypted and used only for identity confirmation, fraud prevention, and compliance. Anthropic also says identity data is not used to train its AI models and is not shared for marketing purposes. Disclosure is limited to legal requirements.

The move reflects growing pressure on AI platforms to address misuse, including fraud and impersonation. Anthropic has also cited age restrictions, with some under-18 accounts reportedly suspended pending verification.

Reaction from users has been mostly unfavorable. “Claude now requires government ID verification (via Persona) before subscription,” one critic wrote. “ChatGPT doesn’t. Gemini doesn’t. Anthropic just handed their competitors a gift,” the X account added. On Reddit, one person stated:

“Goofy. Cannot wait till we have capable off-line LLMs that doesn’t cost a fortune to run.”

The co-founder of the media brand Bankless, Ryan Sean Adams, also shared his view. “AI KYC is here. New claude subscribers asked for gov ID & photo,” Adams wrote. “Not even a regulatory requirement – Anthropic just doing it because they want to. But regulatory is coming Next up will be laws: No AI without gov-issued ID All AI use tracked to individual – no private AI.”

The backlash has been amplified by comparisons to competitors. Platforms like OpenAI and Google’s Gemini do not currently require government ID verification for standard chatbot use. Others competitors, like Venice AI, are private alongside the use of local models.

That difference has led some users to question whether stricter controls could push activity toward less restrictive services. Others argue the shift signals a broader move toward KYC-style checks in consumer AI.

For now, the system remains targeted rather than universal. But its presence suggests identity verification may become a more common layer as AI platforms expand access to more capable tools.

Key Takeaways:

• Circle CEO Jeremy Allaire predicted China could launch a yuan-backed stablecoin within 3 to 5 years.
• USDC grew 72% year-on-year to $75.3 billion by end-2025, boosted by U.S.-Iran war demand for portable dollars.
• Hong Kong has already issued stablecoin licenses to HSBC and others, positioning it as a likely launchpad for CNY tokens.

Allaire: ‘There’s a Tremendous Opportunity for a Yuan Stablecoin’

Speaking with Reuters in Hong Kong, Allaire said stablecoins have become a mechanism for countries to extend their currencies into global trade and payments. He placed China directly inside that conversation.

“There’s a tremendous opportunity for a yuan stablecoin,” Allaire said. “If there’s currency competition, you want your currency to have the best features possible. This is becoming a technological competition.” Allaire put a timeline on it. He said China could roll out a yuan-backed digital token within the next three to five years.

The comment carries weight given Circle’s position in the market. The Boston-based company issues USDC, the world’s second-largest stablecoin by circulation, fully backed by U.S. dollar reserves. USDC grew 72% year-on-year to $75.3 billion in circulation by the end of 2025. As of April 16, defillama.com stats show USDC’s market cap stands at $78.621 billion.

Allaire also said Circle recorded “several billion dollars” in USDC transaction growth following the outbreak of the U.S.-Iran war. He attributed the increase to demand for portable digital dollars during periods of heightened geopolitical risk.

A yuan stablecoin would mark a significant shift in China’s approach to digital assets. The country banned cryptocurrency trading and mining in 2021, citing financial stability concerns. The People’s Bank of China (PBOC) reaffirmed that position in November 2025.

China has advanced a state-controlled alternative through its e-CNY digital yuan pilot program. But Allaire’s framing positions a private or regulated stablecoin as a more flexible tool for offshore trade settlement, where the e-CNY’s tight controls work against broad adoption.

Reuters reported in August 2025, citing sources, that China was considering yuan-backed stablecoins as part of a yuan internationalization strategy. Tech companies including Ant Group and JD.com were reported to have lobbied for approval. In February 2026, the PBOC moved to ban unregulated offshore issuance of yuan-pegged tokens, stating such instruments “perform some functions of legal tender.”

The yuan currently accounts for roughly 2.9% of SWIFT payments. The U.S. dollar holds approximately 47%. A blockchain-native yuan instrument could, in theory, lower the friction for yuan settlement in emerging markets and Belt and Road trade corridors without requiring full currency convertibility.

Hong Kong is functioning as a testing ground. Allaire said Circle sees significant opportunities there, noting that the city is already a cross-border payments hub and has issued stablecoin licenses to institutions including HSBC. He said Circle is actively exploring ways to integrate Hong Kong dollar stablecoins into global platforms.

Circle shares (NYSE: CRCL) gained roughly 1% in pre-market trading following the Reuters interview. The stock has drawn attention from investors tracking the expansion of regulated stablecoin infrastructure.

On the U.S. regulatory front, Allaire commented on the CLARITY Act, which has raised questions about whether it would restrict stablecoin products marketed as interest-bearing savings alternatives. He said any such marketing limits would affect distributors more than issuers like Circle. Whether China moves forward with a yuan-pegged token, the architecture for digital currency competition is already in place.