TITLE:
Bitcoin—Upsides, Downsides and Bone of Contention—A Deep Dive
AUTHORS:
Awadhesh Pratap Singh, Vikrant Kulkarni
KEYWORDS:
Cryptocurrency, Bitcoin, Peer to Peer Electronic Cash System
JOURNAL NAME:
Theoretical Economics Letters,
Vol.9 No.5,
June
14,
2019
ABSTRACT: The purpose of this study is to perform a systematic
literature review on Bitcoin and unveil its upsides, downside and divergent
views from previous studies. The paper presents a systematic literature review
of key studies published on Bitcoin between 2008 and 2019. The focus is given
to three topics: benefits of Bitcoin; its shortcomings; and divergent views
presented by previous cryptocurrency scholars in details. The results indicate
that Bitcoin offers four key benefits—its acceptance as a digital currency,
effective portfolio diversifier, hedging capabilities and higher security. Literature
review revealed five major shortcomings of Bitcoin—weak substitute for traditional currency, higher volatility,
idiosyncratic risks, uncertain regulatory impact and its exogenous supply.
Finally, the review reveals three major areas wherein cryptocurrency scholars
found to have divergent view—acceptance
of its hedging capabilities across regions and portfolios, consensus on Bitcoin
as highly secured and safe asset and, general acceptance of Bitcoin as a
substitute of traditional currencies.