Analysis of Bitcoin Development and Investment Value

Abstract

Bitcoin started out as a cryptology group, and gradually gained the attention of an elite group of economists, programmers, and math enthusiasts outside of cryptography, eventually rising and falling as the price of Bitcoin skyrocketed, after the fermentation of the media has received widespread attention around the world. Therefore, this paper wants to conduct an overview about Bitcoin. Stages of mining, begins with an initial profit that was small and easy to come by, after decades of development, to a mine that cost more than $50,000 a piece and required a specific CPU, huge profits drove people to go crazy. In 2020, Bitcoin has increased by 300%, and as more and more economic entities accept Bitcoin as a means of payment in the future, the role and value of the virtual currency will increase, and the long-term upward trend in Bitcoin can be expected. However, the value of Bitcoin can not be determined. The value depends entirely on the trust of the market, while the vast majority of Bitcoin is in the hands of a very small number of people. And because of its scarcity, its value is extremely volatile. Moreover, Bitcoin regulation varies from country to country, from optimism to caution. China and some countries have banned the exchange of digital currency, especially legal tender and digital currency, the future of Bitcoin remains problematic.