CAN BITCOIN BE A SECURE WALL OF ANOTHER ECONOMIC AND FINANCIAL CRISIS?

Abstract

Complementary currency, or community currency, is a means of exchange which operates in the same system as the national currency to perform functions that the national currency does not. Bitcoin is a digital currency (also called crypto-currency) and it is a medium of exchanged for goods or services with suppliers and sellers who accept Bitcoins as payment. This study aimed to understand the nature of the Bitcoin, and to find out what its advantages are over conventional currencies. In the light of the results presented, it is very clear the growing demand of the people to use this type of electronic currencies as a result of loss of confidence in the government's financial systems specifically after the global economic crisis that led to huge losses that financial systems have not been able to get out of it till now. In addition, people are looking for the safest way to investing their money without interference from external agencies that are looking for their own benefit.