Bitcoin, an SWOT analysis

Abstract

In the year 2009, a new virtual currency called Bitcoin was introduced to the world. Bitcoin generation and transactions are based on hashes and asymmetric encryption algorithms. Bitcoin is the first attempt at creating a decentralized virtual currency with no central bank or financial entity controlling it and is very attractive to different demographies of users. A lot of misunderstanding and doubt surrounds Bitcoin. Based on studying the few years of Bitcoin's circulation and usage, we presented the strengths and weaknesses of Bitcoin and analyzed what opportunities and threats it faces in the current financial environment. We summarized the strengths, weaknesses, opportunities and threats for Bitcoin in an SWOT analysis. We concluded that the most important factors to influence the future of Bitcoin circulation and price are technological advances and people's openness to Bitcoin, the intervention of governments and financial powers by creating laws around cryptocurrencies and external events that are closely tied to the Bitcoin community.