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Prospects of Bitcoin - An evalutation of its future

Wegdell, Alexander LU and Andersson, Gustav LU (2014) NEKN05 20141
Department of Economics
Abstract
The main goal of this thesis is to investigate the properties and prospects of the new digital currency, Bitcoin. How is it structured and is there a possibility of it having a substantial impact on the financial sector or today’s monetary systems? Through macroeconomic theory, financial models and academic writing we will explain the fundamentals of money, how the Bitcoin network functions and in what ways it could be used in the future. The problems lie in the many uncertainties that follow a completely decentralized currency including price instability, lack of regulation and self-policing. Will it become an established, stable currency? We believe not, but it could very well grow into being a useful complement to today’s current... (More)
The main goal of this thesis is to investigate the properties and prospects of the new digital currency, Bitcoin. How is it structured and is there a possibility of it having a substantial impact on the financial sector or today’s monetary systems? Through macroeconomic theory, financial models and academic writing we will explain the fundamentals of money, how the Bitcoin network functions and in what ways it could be used in the future. The problems lie in the many uncertainties that follow a completely decentralized currency including price instability, lack of regulation and self-policing. Will it become an established, stable currency? We believe not, but it could very well grow into being a useful complement to today’s current financial sector and drive institutions towards becoming more efficient. As this is a completely new phenomenon, many questions remain unanswered. However, what is in store for Bitcoin, only time can tell. (Less)
Please use this url to cite or link to this publication:
author
Wegdell, Alexander LU and Andersson, Gustav LU
supervisor
organization
course
NEKN05 20141
year
type
H1 - Master's Degree (One Year)
subject
keywords
cryptocurrency, Bitcoin, digital money, Nakamoto
language
English
id
4462711
date added to LUP
2014-06-26 15:02:01
date last changed
2014-06-26 15:02:01
@misc{4462711,
  abstract     = {The main goal of this thesis is to investigate the properties and prospects of the new digital currency, Bitcoin. How is it structured and is there a possibility of it having a substantial impact on the financial sector or today’s monetary systems? Through macroeconomic theory, financial models and academic writing we will explain the fundamentals of money, how the Bitcoin network functions and in what ways it could be used in the future. The problems lie in the many uncertainties that follow a completely decentralized currency including price instability, lack of regulation and self-policing. Will it become an established, stable currency? We believe not, but it could very well grow into being a useful complement to today’s current financial sector and drive institutions towards becoming more efficient. As this is a completely new phenomenon, many questions remain unanswered. However, what is in store for Bitcoin, only time can tell.},
  author       = {Wegdell, Alexander and Andersson, Gustav},
  keyword      = {cryptocurrency,Bitcoin,digital money,Nakamoto},
  language     = {eng},
  note         = {Student Paper},
  title        = {Prospects of Bitcoin - An evalutation of its future},
  year         = {2014},
}