BITCOIN has been a hot topic since launching with its price currently sitting at just under $43,463.
The decentralised currency was first created in 2009 and has become the world's largest cryptocurrency, according to CoinMarketCap.
Bitcoin tokens are a digital-only form of payment and created by computer code.
Their value is determined by supply and how much people are willing to buy them for.
But Bitcoin, as well as other cryptocurrencies, can be highly risky as their value can fluctuate wildly, meaning you're at risk of losing all the money you invested.
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For that reason, you should never invest more than you can afford to lose.
Many crypto firms are barely regulated too, so you aren't protected if anything goes wrong.
How much is Bitcoin worth?
The price of Bitcoin currently sits at just under $43,463, down by 0.8% over the past 24 hours, according to CoinMarketCap.
In comparison, it was worth about less than a cent in its first few years.
The cryptocurrency's value has soared in recent years, and hit its highest ever price above $63,000 in April, 2021.
It also plunged massively to around $16,600 in November last year, with many investors losing out on giant sums of money.
Since its inception in 2009, Bitcoin's value has fluctuated for a number of reasons, including comments by Tesla founded Elon Musk and a series of crypto crackdowns around the world.
In May 2021, Bitcoin went into freefall after Mr Musk withdrew his support for the currency, citing the harmful effects that comes from mining it.
Its value also crashed in the same month after China announced a further crackdown on cryptocurrencies.
Last year, bitcoin and other cryptocurrencies crashed again for a number of reasons, including Russia's invasion of the Ukraine.
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A lack of regulation shook investor confidence in digital currencies and tokens and the collapse of crypto exchange FTX also played a contributing role.
But in 2023, its value has steadily risen to where it is sat today - at over $43,000 - partly due to its halving event.
This happens every four years where the reward for mining Bitcoin falls by half, reducing the supply of fresh tokens coming to the market.
Despite the next halving being in 2024, it has seen the value of Bitcoin rise this year.
Will Bitcoin and other cryptocurrencies' prices rise?
It's impossible to predict exactly what will happen to Bitcoin currency, and other cryptocurrencies, in 2024.
But Laith Khalaf, head of investment analysis at AJ Bell, said plans by the UK government to regulate the market next year could see their value rise domestically.
He commented: "Increased regulation might be a positive for crypto, potentially opening up fresh pools of capital and fostering greater confidence amongst consumers."
He added the halving event could also see the value of cryptocurrencies boosted in 2024.
But, he warned of the extreme volatility of cryptocurrencies, which can fluctuate in value due to "something as extraneous as a tweet from Elon Musk".
He said: "In the long run the widespread adoption of crypto as either an asset or a currency is still highly speculative, and as a result prices can be expected to remain incredibly volatile and heavily influenced by sentiment."
Meanwhile, Victoria Scholar, head of investment at Interactive Investor, echoed Laith, adding: "Cryptos are notoriously volatile.
"While investors can make impressive gains, they can also be left nursing painful losses."
Remember, the cryptocurrency marketplace is a target for fraud, so make sure you do your research before investing in anything.
Lloyds Bank warned earlier this year scams are up 23%, with victims losing over £10,000 on average.
There are some red flags to keep an eye out for, including:
- "celebrities" contacting you about crypto
- anyone offering you "free" money or crypto
- a romantic interest you've met on a dating app or online asking you for money for crypto
- investment managers contacting you saying they can grow your money quickly
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