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Bitcoin – A Brief Analysis of the Advantages and Disadvantages

Author

Listed:
  • GEORGE CORNEL DUMITRESCU

    (Institute for World Economy 13th Calea 13 Septembrie, Sector 5, ZIP Code 050711 ROMANIA)

Abstract

Along the history, people organised in communities needed payment means in order to exchange goods or deliver services. From beads and feathers to metal and paper money they have always improved the way transactions were made. The invention of the Internet opened new doors in the field of payments, through the quick access to information and the emergence of significant international online communities. The members of these communities became aware of the importance of decentralising the way they acquire goods or services, thus eliminating the middlemen. Cryptocurrencies represent the response of these communities to the old centralised means of payment, controlled by the bankers, politicians and interest groups. Our paper aims to analyse the cryptocurrency phenomenon revealing some of its advantages and disadvantages, to increase the awareness on the topic. We based our research on the existing literature, the relevant international databases, the official positions of the financial and regulatory institutions on the analysed matter.

Suggested Citation

  • George Cornel Dumitrescu, 2017. "Bitcoin – A Brief Analysis of the Advantages and Disadvantages," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 5(2), pages 63-71, December.
    • Handle: RePEc:ntu:ntugeo:vol5-iss2-17-063
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    References listed on IDEAS

    as
    1. Michel Rauchs & Garrick Hileman, 2017. "Global Cryptocurrency Benchmarking Study," Cambridge Centre for Alternative Finance Reports 201704-gcbs, Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Marcel C. Minutolo & Werner Kristjanpoller & Prakash Dheeriya, 2022. "Impact of COVID-19 effective reproductive rate on cryptocurrency," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-27, December.
    2. Pandya Suhag & Mittapalli Murugan & Gulla Sri Vallabha Teja & Landau Ori, 2019. "Cryptocurrency: Adoption efforts and security challenges in different countries," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 10(2), pages 167-186, August.

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    More about this item

    Keywords

    Bitcoin; Nakamoto; cryptocurrency; altcoins; blockchain; ethereum; security;
    All these keywords.

    JEL classification:

    • G - Financial Economics
    • G1 - Financial Economics - - General Financial Markets
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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