Bitcoin as a National Currency: A Case Study for the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F75081431%3A_____%2F24%3A00002739" target="_blank" >RIV/75081431:_____/24:00002739 - isvavai.cz</a>

Result on the web

<a href="https://actamont.tuke.sk/pdf/2024/n1/2vochozka.pdf" target="_blank" >https://actamont.tuke.sk/pdf/2024/n1/2vochozka.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Bitcoin as a National Currency: A Case Study for the Czech Republic

Original language description

In an era of changing financial landscapes, the position of cryptocurrencies like Bitcoin as possible national currencies is worth investigating. This study investigates Bitcoin's adherence to currency criteria and its consequences for GDP development in a certain country. The mining industry plays a significant role in the GDP of many countries. The extraction of raw materials such as metals, minerals, and fossil fuels is essential for producing a wide range of goods and services. This generates jobs and tax revenues and supports economic growth. Understanding these processes is critical, given the ongoing debate about Bitcoin's place in modern economies. This research looks into Bitcoin's usefulness as a currency and its possible influence on a certain country's GDP. The results show that Bitcoin fits the requirements for money, acting as a means of exchange and a store of value, with features including mobility, divisibility, commensurability, and fungibility. When examining its influence on GDP, empirical data indicate that, while currency appreciation may provide the illusion of stronger GDP growth when denominated in foreign currency, it damages growth domestically. According to a neural network study, Bitcoin's large impact on GDP renders it unsuitable for use as a national currency in the Czech Republic. Despite matching currency criteria, Bitcoin's adoption confronts problems such as volatility, a lack of central authority, and its worldwide nature, which limit its usefulness in promoting national economic growth. This analysis emphasizes country selection and length restrictions, finding that Bitcoin's existing position as an investment instrument restricts its viability as a national currency.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50200 - Economics and Business

Project

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Continuities

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Acta Montanistica Slovaca

ISSN

1335-1788

e-ISSN

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Volume of the periodical

29

Issue of the periodical within the volume

1

Country of publishing house

SK - SLOVAKIA

Number of pages

13

Pages from-to

13-25

UT code for WoS article

001291898500003

EID of the result in the Scopus database

2-s2.0-85199982825