Bitcoin: an asset or a currency?

• Autor(a) principal: Ferreira, Francisco Santos
• Data de Publicação: 2018
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/18373
• topic: Bitcoin; Blockchain; Synthetic commodity; Cryptocurrency; Gestão financeira; Economia digital; Moeda; Volatilidade; Ativo financeiro; Regulamentação

The aim of this thesis is to explore whether digital currencies such as Bitcoin can be perceived as a currency or an asset. It begins by describing different types of currencies. Functions of money are also defined, providing a comparison between bitcoin and fiat currencies. Moreover, the concept and functions of bitcoin are developed, as well as other innovations that are linked to the bitcoin software, such as blockchain and its importance for several industries in the future. Bitcoin challenges and complications are also going to be discussed. Network security, criminal activities and the importance of regulating digital currencies are the major topics regarding bitcoin challenges. A significant part of the criticism surrounding bitcoin is due to its slow transaction processing and its volatility when comparing to fiat currencies, as well as other cryptocurrencies that may become future competitors of fiat currencies. Due to the major challenges that were developed, bitcoin cannot be considered as a currency yet: however it fits between commodity and fiat money, which is called synthetic commodity money. As it is explained throughout this thesis bitcoin represents a unique asset class, which is able to change the way people make transactions.