Bitcoin’s potential of becoming a world currency

Seminar paper from the year 2019 in the subject Economics - Finance, grade: 1,7, Northern Business School, course: International Financial Relations, language: English, abstract: In this thesis, the crypto-currency Bitcoin should be examined for its suitability as world currency or part of it. In order to determine the potential of Bitcoin, the terms currency and cryptocurrency must be explained and defined first. Included in the definition of cryptocurrencies is the meaning of the Bitcoin system and the functionality will be roughly explained. In this thesis the detailed technical aspects of the design of the Bitcoin system are greatly simplified and partially neglected. After that follows a summary of advantages and disadvantages of cryptocurrencies in general that can be found in the literature. This is primarily to gain insight into how the current perception of Bitcoin is in the public and to identify arguments that are likely to have a high impact on others' opinions. After the consideration of the cryptocurrency Bitcoin follows a historical discussion with the concept of the world currency. It will be investigated which approaches of a world currency already existed in the recent past and which are currently available. This will lead to the identification of the driving forces and challenges that have an impact on the fiscal world order. Thereon, the findings about the Bitcoin system will be laed against the discussion about a world currency and potentials will be derived. After a conclusive summary and a critical conclusion, further research opportunities in the investigated fields are finally opened.