Bitcoin. Opportunities and Risks of a Digital Currency

Bachelor Thesis from the year 2014 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,3, Berlin School of Economics and Law, language: English, abstract: The aim of this paper is to make a statement about the future viability of the Bitcoin system by comparing opportunities and risks. In particular, the effects and existing risks for the conventional banking system will be discussed. The digital currency Bitcoin enjoys great media interest. Its origins can be traced back to 2008. The timing of its introduction was extremely appropriate at the time, as the global economy was still dealing with the aftermath of the financial crisis and confidence in the existing banking system was shaken. A revolutionary payment system, detached from state control, thus gained a large number of users and supporters within a few years. In addition, the very pronounced critical discussion of Bitcoin on the part of the press and regulatory authorities shows the necessity for states, banks, companies and private consumers to seriously deal with the topic of Bitcoin. At first glance, the technically complex concept of the Bitcoin system is very complicated and abstract. In addition, the currency exists exclusively digitally and is therefore difficult for ordinary consumers to grasp. Nevertheless, the density of users, Bitcoin transactions and the number of acceptance points are constantly increasing. Due to this, a controversial public discussion has arisen in which banks and even state institutions evaluate Bitcoin differently.