Will Bitcoin Become New Money of an Innovative Digital and Entrepreneurial Society?


 In view of significant loss of trust in the financial system as a result of the subprime crisis, the search for an alternative formula of money, independent of central governments and central banks, has intensified. Most of the emerging concepts refer to the idea of electronic money. The birth of Bitcoin in 2009 initiated the contemporary spectacular and dynamic history of cryptocurrencies. Its popularity seems to be stimulated mainly by the innovative nature of technology which, even in the era of information economy, is perceived as revolutionary and perspective. Enthusiasts of the new concept predict that the uniqueness of block-chaining technology will make cryptocurrency a new formula of the innovative digital and entrepreneurial society. On the other hand, skeptics see Bitcoin only as another novelty in the niche concept of alternative money. They often formulate the hypothesis that it is foremost an instrument of financial speculation, fulfilling the functions of money only to small extent. What is worse, they also claim that its expansion creates a new speculative bubble which may be the source of another financial crisis. These doubts are fundamental in answering the question whether Bitcoin will become new money of an innovative society. In the following part of the study, an analysis of data collected from the complete transaction database available through the blockchain.info portal will be conducted (https://www.blockchain.com 2018). For the purposes of this study, selected data for the period 2011-1Q 2018 will be analyzed.

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