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Bitcoin: Future or Fad?

In: Big Data in Finance

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  • Daniel Tut

    (Toronto Metropolitan University)

Abstract

Is Bitcoin the payment system of the future? This chapter argues that Bitcoin is neither currency nor gold; instead, it is a tradeable asset and an alternative form of investment. Moreover, Bitcoin also exhibits some investment features similar to collectibles. This chapter shows that the true value of Bitcoin lies not in its speculative nature but in its embedded technology, blockchain, which has the potential to revolutionize traditional finance. Blockchain technology can provide solutions to big data challenges and provide an off-ramp during times of political uncertainty. Lastly, this chapter discusses how Bitcoin’s long-term survivability and viability as an asset will largely depend on its diversification, institutional adoption, tax treatment, and regulations.

Suggested Citation

  • Daniel Tut, 2022. "Bitcoin: Future or Fad?," Springer Books, in: Thomas Walker & Frederick Davis & Tyler Schwartz (ed.), Big Data in Finance, pages 133-157, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-12240-8_8
    DOI: 10.1007/978-3-031-12240-8_8
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    References listed on IDEAS

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    Cited by:

    1. Oosterlinck, Kim & Reyns, Ariane & Szafarz, Ariane, 2023. "Gold, bitcoin, and portfolio diversification: Lessons from the Ukrainian war," Resources Policy, Elsevier, vol. 83(C).

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    More about this item

    Keywords

    Bitcoin; Cryptocurrency; Blockchain technology; Smart contracts; Digital assets; NFTs;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • G0 - Financial Economics - - General
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G1 - Financial Economics - - General Financial Markets
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O - Economic Development, Innovation, Technological Change, and Growth

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