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Usability of the Bitcoin in the Contemporary Digital Economy

Author

Listed:
  • Andrzej Sołoma

    (Uniwersytet Warmińsko-Mazurski w Olsztynie)

  • Karol Spychalski

    (Uniwersytet Warmińsko-Mazurski w Olsztynie)

Abstract

The Bitcoin is a peer-to-peer electronic payment system that operates as an independent currency. In this paper, we have examined whether the Bitcoin should be considered a currency according to the criteria widely used by economists. We argue that the Bitcoin does not behave much like major international currencies because the excessive volatility compared to other currencies changes. Our results show that usability of the Bitcoin has increased rapidly. It is traded on many exchanges. Yet, the future of the Bitcoin is still very uncertain.

Suggested Citation

  • Andrzej Sołoma & Karol Spychalski, 2017. "Usability of the Bitcoin in the Contemporary Digital Economy," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 45, pages 227-240.
    • Handle: RePEc:sgh:annals:i:45:y:2017:p:227-240
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    References listed on IDEAS

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    1. James Angel & Douglas McCabe, 2015. "The Ethics of Payments: Paper, Plastic, or Bitcoin?," Journal of Business Ethics, Springer, vol. 132(3), pages 603-611, December.
    2. Cheah, Eng-Tuck & Fry, John, 2015. "Speculative bubbles in Bitcoin markets? An empirical investigation into the fundamental value of Bitcoin," Economics Letters, Elsevier, vol. 130(C), pages 32-36.
    3. Brandvold, Morten & Molnár, Peter & Vagstad, Kristian & Andreas Valstad, Ole Christian, 2015. "Price discovery on Bitcoin exchanges," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 36(C), pages 18-35.
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