Bitcoin : New Alternative Financial Approach

Abstract

This research study aims to study Bitcoin as 1) a viable digital currency and 2) its characteristics as equivalent to a fiat money. A qualitative research study is conducted to examine the potential of Bitcoin as an acceptable digital currency for monetary exchange in commodities, goods, and services. A total of 8 key informants who are experts in digital currency are interviewed. Documentary review is also utilized in supporting the study for a comprehensive analysis and evaluation of Bitcoin.

The findings from the research study are Bitcoin cannot be a reliable currency at present as its value fluctuates extensively making Bitcoin an unstable currency to be used as a medium of exchange for goods and services, despite its protocol of computation for safe transaction with low transaction fee and immediate transfer, Bitcoin still do not gain confidence as reliable digital currency, and Bitcoin is currently used as an investment for trading and generating profits such as initial coin offering (ICO) rather than its original intent to be an alternative form of financial approach.