1. International School of Economics, Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan
2. Knowledge economy UNEC research center, Azerbaijan State University of Economics, Baku, Azerbaijan
3. International Magistrate and Doctorate Center (IMDC), Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan
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The gain in the popularity of Bitcoin and recent sharp price volatility
enhanced the interest of various individuals toward Bitcoin. The recent
discussion of various authors on the Bitcoin brought some doubts in the
future of cryptocurrency. Some authors considered it as money of the
future while others criticize it as being a speculative vehicle that will be
abandoned in future. The purpose of this article is to show the opposing
views in the existing literature and identify whether Bitcoin is used as a
tool for speculation or currency. This study focusses mainly on the money
function of Bitcoin and breach of one of the most important features
which is stability as a result of usage it for the purpose of speculative
profit gain. The result of this study found that Bitcoin is used as a tool for
speculation and considered unstable asset. If the current status of the
currency remains the same, the Bitcoin will not be a currency. Further
technological advancement, modifications, and regulations should be
directed towards the centralization of Bitcoin in order to maintain
stability and its future usage as currency.
Citation:
Ismayilov, A., & Ibadov, H. (2019). Bitcoin: The currency of the future or a tool for speculation?. ASERC Journal of Socio-Economic Studies, 2(1), 62-76. DOI:10.30546/2663-7251.2.1.62