Published July 29, 2023
| Version v1
Journal article
Open
Will Bitcoin become money?
Description
This research examines Bitcoin's potential as money, considering its underlying technology, economic implications, and societal impacts. Through a literature review, the study explores Bitcoin's role as a medium of exchange, unit of account, and store of value, while evaluating its compatibility with different money theories. It analyzes Bitcoin's decentralized nature, unknown creator, and current usage scale. Findings suggest that Bitcoin faces challenges such as limited supply, volatility, and its potential for facilitating illicit activities. It diverges from traditional macroeconomic theories, raising concerns about long-term stability. Despite its limitations, Bitcoin offers transparency and decentralization. The research concludes that Bitcoin falls short of meeting traditional money criteria but acknowledges the potential of Central Bank Digital Currencies (CBDCs) to address these limitations and enhance digital payment systems. The ongoing evolution of cryptocurrencies and the exploration of CBDCs are crucial factors shaping the future of digital currencies and their impact on the financial landscape.
Files
Article 935 Soft-Copy.pdf
Files
(1.2 MB)
| Name | Size | Download all |
|---|---|---|
|
md5:fcbf8ddb62befd4ce8ef0cc88f659276
|
1.2 MB | Preview Download |
Additional details
References
- B2BinPay. (2023). Countries Which Allow Cryptocurrency As Legal Payment Method. CryptoCurrency Payments - B2BinPay. https://b2binpay.com/en/countries-which-allow-cryptocurrency-as-legal-payment-method/
- Mattackal, L. P. (2022, April 12). Cryptoverse: 10 billion reasons Bitcoin could become a reserve currency. Reuters. https://www.reuters.com/business/cryptoverse-10-billion-reasons-bitcoin-could-become-reserve-currency-2022-04-12/
- Is Bitcoin and Cryptocurrency the Future of Money - FWS. (n.d.). https://www.flatworldsolutions.com/IT-services/articles/bitcoin-cryptocurrency-future-money.php
- Yermack, D. (2015). Is Bitcoin a Real Currency? An Economic Appraisal. In Elsevier eBooks (pp. 31–43). https://doi.org/10.1016/b978-0-12-802117-0.00002-3
- Barber, S., Boyen, X., Shi, E., & Uzun, E. (2012). Bitter to Better — How to Make Bitcoin a Better Currency. In Lecture Notes in Computer Science (pp. 399–414). Springer Science+Business Media. https://doi.org/10.1007/978-3-642-32946-3_29
- Dyhrberg, A. H. (2016). Bitcoin, gold and the dollar – A GARCH volatility analysis. Finance Research Letters, 16, 85–92. https://doi.org/10.1016/j.frl.2015.10.008
- Bouri, E., Gupta, R., Tiwari, A. K., & Roubaud, D. (2017). Does Bitcoin hedge global uncertainty? Evidence from wavelet-based quantile-in-quantile regressions. Finance Research Letters, 23, 87–95. https://doi.org/10.1016/j.frl.2017.02.009
- Fullenkamp, C. R. (2014). Making Sense of Bitcoins with Dr. Connel Fullenkamp. Duke Economics Review. https://98848479-723a-4b43-ba13-f1d266be4045.filesusr.com/ugd/a8db5e_aafdc6665d7947b4b1c3df01952b1571.pdf
- Söderberg, G. (2018). Are Bitcoin and other crypto-assets money? Sveriges Riksbank. https://www.riksbank.se/globalassets/media/rapporter/ekonomiska-kommentarer/engelska/2018/are-bitcoin-and-other-crypto-assets-money.pdf
- Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. https://bitcoin.org/bitcoin.pdf
- Swan, M. (2015) Blockchain: Blueprint for a New Economy. O'Reilly Media, Inc., Sebastopol. ISBN: 9781491920497
- Antonopoulos, A. M. (2017). Mastering Bitcoin: Unlocking Digital Cryptocurrencies. O'Reilly Media. ISBN: 9781491954386
- Wright, C. S. (2008b). Bitcoin: A Peer-to-Peer Electronic Cash System. Social Science Research Network. https://doi.org/10.2139/ssrn.3440802
- Brewster, T. (2015, December 11). Time To Call A Hoax? Inconsistencies On "Probable" Bitcoin Creator's PhD And Supercomputers Revealed. Forbes. https://www.forbes.com/sites/thomasbrewster/2015/12/11/bitcoin-creator-satoshi-craig-wright-lies-hoax/?sh=3013be267947
- Mitra, M. (2022, July 7). Crypto Might Be the Future of Finance. But That's Not Why Most People Buy It. Money. https://money.com/why-buy-crypto-survey/
- Flynn, J. (2022). How Many Businesses Accept Bitcoin? [2023]: 21 Important Bitcoin Statistics. Zippia. https://www.zippia.com/advice/how-many-businesses-accept-bitcoin/
- Chambers, A., & Mross, E. (2023). Cryptocurrency in the small business sector. Masters Culminating Experience. https://doi.org/10.26207/5xhj-kc16
- Nasdaq Data Link. (n.d.). https://data.nasdaq.com/data/BCHAIN/NTRAN
- Nasdaq Data Link. (n.d.-b). https://data.nasdaq.com/data/BITFINEX/BTCUSD-btcusd-exchange-rate
- (3.51%) Bitcoin Volatility Index - Charts vs Dollar & More. (n.d.). https://buybitcoinworldwide.com/volatility-index/
- Cryptocurrencies: tracing the evolution of criminal finances | Europol. (n.d.). Europol. https://www.europol.europa.eu/publications-events/publications/cryptocurrencies-tracing-evolution-of-criminal-finances
- Howcroft, E. (2023, January 12). Crypto crime hits record $20 bln in 2022, report says. Reuters. https://www.reuters.com/business/finance/crypto-crime-hits-record-20-bln-2022-report-says-2023-01-12/
- Foley, S., Karlsen, J. R., & Putniņš, T. J. (2019). Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed through Cryptocurrencies? Review of Financial Studies, 32(5), 1798–1853. https://doi.org/10.1093/rfs/hhz015
- Achhangani. (2023). Snapshot: Which countries have made the most progress on CBDCs so far in 2023. Atlantic Council. https://www.atlanticcouncil.org/blogs/econographics/which-countries-have-made-the-most-progress-in-cbdcs-so-far-in-2023/
- FANTI, G., LIPSKY, J., & MOEHR, O. (2022, September 1). Central bankers' new cybersecurity challenge. IMF. https://www.imf.org/en/Publications/fandd/issues/2022/09/Central-bankers-new-cybersecurity-challenge-Fanti-Lipsky-Moehr
Subjects
- Business Management
- http://www.gphjournal.org/index.php/bm/article/view/935