Bitcoin is one of the most special financial products of the 21st century. The price of a bitcoin once rose to a record high of $60,000, which makes people wonder what bitcoin is on earth. Why is it worth so much when it's just a bunch of numbers? 

What is Bitcoin? What is Cryptocurrency?

Bitcoin is a blockchain-based cryptocurrency using the peer-to-peer (P2P) network and open source code. Bitcoin was created in 2008 when a mysterious person named Satoshi Nakamoto published an article called Bitcoin: A Peer-to-Peer Electronic Cash System, In 2009, the first batch of 50 bitcoins were generated through the blockchain technology from the paper. Since then, bitcoin and blockchain have opened the world of cryptocurrencies like genesis.

Bitcoin is a token reward generated by transaction verification through the blockchain technology and protocol. This action of transaction verification is commonly known as mining, and the people responsible for executing the verification transaction are called miners. Anyone can become a miner, and you need to verify transactions through computer calculations to get rewards in Bitcoin. So the more powerful the computer, the better the calculations, the more rewards it will get, which is why the cards are so out of stock amid the Bitcoin frenzy.

The Value of Bitcoin 

Since the Bitcoin system uses encryption technology to generate and trade bitcoin on the basis of the blockchain network, on this basis, A and B can directly trade without intermediary C, so it is completely decentralized, unlike the existing central bank which can issue more money at will, leading to inflation. Also because of the encryption technology, Bitcoin is anonymous, and the relationship without intermediaries, also leads to a lot of illegal transactions such as money laundering in Bitcoin.

In most countries around the world, Bitcoin is not recognized as a currency but as a virtual commodity, with the exception of El Salvador, which introduced bitcoin as a legal tender in 2021. While most countries in the world can legally use bitcoin and other cryptocurrencies, some countries may add some restrictions, such as China's 2021 requirement that relevant institutions not conduct commercial activities such as providing business premises, commercial displays, marketing and publicity services.

A lot of people ask what is the value of bitcoin after all? 

Conclusion

So to put it bluntly, bitcoin is a completely worthless thing, it has no intrinsic value, but in this real financial world is not also a lot of goods is completely worthless? The point is that value is created by people. Of course, it's not that Bitcoin doesn't have a future, instead, cryptocurrencies have been played an important in the financial world, and the wolves of Wall Street have expanded from the financial industry to the technology industry.