A Comprehensive Study of Bitcoin in Modern Finance: A Theoretical Framework

Abstract

The Cryptocurrency market has grown massively over the last decade, necessitating a greater emphasis on a study on different facets of Cryptocurrencies. Bitcoin, a most prominent Cryptocurrency relies on Blockchain technology. This new technology helps to prevent the double spending problem. The purpose of this study is twofold. The purpose of this study is twofold. First, this study makes a significant contribution to this area of research by examining Bitcoin's behavior. In addition, a narrative literature review method is employed to assess if Bitcoin may be classified as a regular currency or an asset. Second, it aids in understanding the opportunities and challenges of adopting Cryptocurrency, as a medium of exchange. The results show that Bitcoin can be used as a speculative investment instead of banknotes due to its high volatility and unregulated market. On the other hand, Bitcoin; offers low transaction costs, can be purchased in fractions, is safe and secure, and helps to prevent inflation while using as a payment gateway. This study helpful for academicians and economists in conducting future research.