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Impact of Bitcoin as a World Currency

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  • A. Seetharaman
  • A.S. Saravanan
  • Nitin Patwa
  • Jigar Mehta

Abstract

In an era of technology advancement when the entire world is talking about the “Internet of Things†whereby we are expected to have connectivity between anything and everything, Currency cannot be left behind. Paper currency is bound to be a thing of past, as virtual currencies will start taking over and Bitcoin is well poised to achieve this feat. Not only it will revolutionize the way payments are made, but also have potential to impact the future of world currencies like USD, which is already facing challenges from EURO or Chinese Yuan Renminbi (CNY). The rise of crypto-currencies will add a new dimension to this challenge for US Dollar (USD)The focus of this study is to understand multiple factors which are translating Bitcoin (BTC) that is gaining momentum in various fields of global finance and how disruptive it can be, including replacing main fiat currencies in the financial system impacting mainly USD. The key variables studied are Regulation or lack of it around Bitcoin, Bitcoin Technology, Bitcoin Economy and the usage of Bitcoin as a Currency. This research used the latest statistical tool ADANCO 1.1.1 by Henseler and Dijkstra (2015) to analyze the data collected by building a partial least squares structural equation model (PLS-SEM). The observations of this study will help understand the future of global finance from multiple standpoints, especially Regulation, Cryptocurrencies and the fiat currencies.

Suggested Citation

  • A. Seetharaman & A.S. Saravanan & Nitin Patwa & Jigar Mehta, 2017. "Impact of Bitcoin as a World Currency," Accounting and Finance Research, Sciedu Press, vol. 6(2), pages 230-230, May.
    • Handle: RePEc:jfr:afr111:v:6:y:2017:i:2:p:230
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    Cited by:

    1. Mladenović, Dušan & Bruni, Roberto & Filieri, Raffaele & Ismagilova, Elvira & Kalia, Prateek & Jirásek, Michal, 2024. "The power of electronic Word of Mouth in inducing adoption of emerging technologies," Technology in Society, Elsevier, vol. 79(C).
    2. Jacopo Temperini & Marcella Corsi, 2023. "Democratizing money? The role of cryptocurrencies," PSL Quarterly Review, Economia civile, vol. 76(304), pages 51-66.
    3. Imad A. Moosa, 2022. "Fintech," Books, Edward Elgar Publishing, number 21229, December.
    4. Lei Wang & Provash Kumer Sarker & Elie Bouri, 2023. "Short- and Long-Term Interactions Between Bitcoin and Economic Variables: Evidence from the US," Computational Economics, Springer;Society for Computational Economics, vol. 61(4), pages 1305-1330, April.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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