Cryptocurrencies are often associated with the Wild West, as there are still lots of open questions concerning its nature juristically, economically and tax status. The price of a Bitcoin has been growing with recurrences of high fluctuations in the last years and has shown similarities to the concepts of a speculative Bubble. Is this statement justified?

The media either praises Bitcoin as a great innovation, or demonizes it. This makes it very difficult to obtain an objective position about Bitcoin. This work analyses the characteristics of Bitcoin and evaluates their relevance for a sustainable existence. Are cryptocurrencies just a temporary phenomenon or should we expect them to prevail in the future?

The intention of this work is to provide an economical analysis of cryptocurrencies by investigating its biggest representative, Bitcoin. The main research questions are therefore:

• How does Bitcoin work?
• What are the benefits and risks of Bitcoin?
• How is the price of Bitcoin determined?
• Can Bitcoin currently be identified as mone]]>