What is Bitcoin?
Bitcoin was created in 2009 by an anonymous developer or group of anonymous developers under the name of Satoshi Nakamoto. Bitcoin is a decentralized cryptocurrency that operates on a peer-to-peer network and utilizes a consensus mechanism. It is open source and uses blockchain technology as its underlying infrastructure.
What is the investment value of Bitcoin?
The total market capitalization of the cryptocurrency market has exceeded $2.53 trillion since 2024, with Bitcoin, the largest cryptocurrency, experiencing a more than 69% increase in the first quarter of the year. The rise is driven by spot Bitcoin ETFs, which attracted over $12 billion of inflows in the first quarter. Currently, the spot Bitcoin ETFs hold a total of 831,000 bitcoins, with a value of around $59 billion.
Bitcoin may enhance the Portfolio Diversification
Bitcoin’s low correlation with mainstream financial markets makes it an effective tool for diversifying investment portfolios. Meanwhile, as Bitcoin gains wider acceptance and institutional investors incorporate it into their portfolios, its higher risk profile is expected to contribute to better portfolio performance.