Bitcoin: Digital Illusion or a Currency of the Future?

Gyöngyi Bugár () and Márta Somogyvári ()
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Gyöngyi Bugár: University of Pécs
Márta Somogyvári: University of Pécs

Financial and Economic Review, 2020, vol. 19, issue 1, 132-153

Abstract: Bitcoin has been one of the most interesting financial innovations in the last ten years. In this essay, we set out to discover why it has not spread as a medium of payment and how it has become a high-risk form of investment instead. We examine the operational mechanisms of bitcoin technology and explain the ideological background for the popularity of bitcoin. We conclude that, in its present form, bitcoin is not suitable to become a generally accepted medium of payment.

Keywords: bitcoin; cryptocurrency; blockchain; libertarian economic policy (search for similar items in EconPapers)
JEL-codes: E42 G10 O31 (search for similar items in EconPapers)
Date: 2020
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