BItcoin, a glimpse of the future?
Abstract: The aim with this thesis is to investigate the relatively new currency Bitcoin and shed some light over its structure and composition from a macroeconomic point of view. Not a lot of academic work has been published on the subject it is therefore interesting to dive deeper into. By using macroeconomic theory and published academic work I will try to determine if the new digital currency has a chance to gain traction and change part of our monetary system. The problem partly lies in whether legal authorities can prevent the usage of the currency or not. But with that taken aside, what Bitcoin will do is leaving a dent in the economic system. It has shown us that it is possible to create a system with no centralized authority at all and no government is needed to enforce rules. With only the users self-policing the system it has shown us that we need not to be bound down entirely by governments monopoly on monetary control. Is Bitcoin to be a new “world currency”? Probably not. But ripples have been created in the economic system and new forms of digital currencies are emerging. But only time can tell what the future might hold for us in the world of digital currencies.
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