An X-ray of Bitcoin Cryptocurrency

Abstract

In the context of an increased distrust of the population in the financial system, generated by the recent crisis, †the digital payment instruments†have emerged as a new alternative to the online transactions for a variety of communities interlinked via the Internet. Bitcoin is the first of these "instruments" that came out of the pattern of a single online community, propagating as an accepted means of payment in the transactions between virtual communities worldwide. Its platform enables the expansion of the network by taking new members: individuals, public or private organizations, etc. Analyzing economic literature, the statistical information and the available data provided by the great promoters of this payment system, our paper aims to assess the Bitcoin phenomenon, from monetary standpoint and also from the perspective of a SWOT analysis, identifying the advantages and disadvantages of the system and development prospects in the medium and long run.