The Rise of the Digital Currency and Its Implications. Bitcoin Between an Artificial Bubble and the Next Economic RevolutionAbstract:The digital revolution has penetrated every corner of modern life in the last ten years. The world we now live in bears little resemblance to even the recent past. And the changes that are coming will disrupt our lives in even greater ways, some good and some harmful. This article aims at analyzing one of these big changes – the digital currency. This concept has gained more and more attention from the media during the past couple of months, especially since the meteoric rise of Bitcoin, the primary such currency existent on the market. This might very well be a pivotal moment in cultural history, shaping our future in ways hard to imagine. For the first time we are talking about digital money that exists outside the control of governments and banks, that has intrinsic proved value and which can be spent anonymously. Alongside its novelty, the complexity of the digital currency concept brings about many contradictory opinions, ranging from those of pure enthusiasts recognizing its raw potential, to those of convinced skeptics viewing it as a merely ephemeral object of speculation. But this tidal wave cannot be stopped, and its path can best be charted by examining this thrilling new human invention more in depth. We will not only try to shed some light upon the technical aspects behind digital currencies, from their underlying principles up to the key question of their security, but we will also carefully consider arguments from both sides of the Bitcoin debate and even peek at the rest of digital currencies out there in order to better understand their fascinating world

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