Seminar paper from the year 2019 in the subject Economics - Monetary
theory and policy, Heilbronn University of Applied Sciences, language:
English, abstract: According to conventional wisdom, the cryptocurrency
Bitcoin exhibits several improvements compared to the traditional
banking system, namely its decentralized structure and a proof-of-work
consensus mechanism. However, authors frequently discover problems and
propose all kinds of fundamental changes, such as completely new
consensus mechanisms by which they want to replace the existing system.
That raises the question of how the further development of Bitcoin has
to be promoted. We review the most relevant literature concerning
Bitcoin's current role and future potential from different angles. By
putting ourselves in the position of involved actors, we find out what
they expect from the Bitcoin network and how desirable additional
regulatory measures are for them. Although it is generally accepted that
appropriate governance can contribute to a more stable and secure
currency, cryptocurrencies' unique characteristics add a new dimension
to this idea. That is why we sporadically throw in comparisons to local
currency schemes already in existence in order to conclude how the
question of regulating a decentralized currency must be addressed.
