Bitcoin and its impact on the economy

TL;DR

This paper reviews the history and current applications of Bitcoin in various industries, analyzes its economic impact, and discusses its future potential and challenges amidst volatility and regulatory concerns.

Contribution

It provides a comprehensive analysis of Bitcoin's integration into industries and evaluates its economic value and future prospects, highlighting recent industry partnerships and valuation factors.

Findings

Bitcoin is used in airline and real estate industries to reduce costs and improve transaction efficiency.

Businesses express concerns over Bitcoin's volatility and regulatory interference.

Bitcoin's value is based on scarcity, utility, and public trust, with future prospects linked to technological and market developments.

Abstract

The purpose of this paper is to review the concept of cryptocurrencies in our economy. First, Bitcoin and alternative cryptocurrencies' histories are analyzed. We then study the implementation of Bitcoin in the airline and real estate industries. Our study finds that many Bitcoin companies partner with airlines in order to decrease processing times, to provide ease of access for spending in international airports, and to reduce fees on foreign exchanges for fuel expenses, maintenance, and flight operations. Bitcoin transactions have occurred in the real estate industry, but many businesses are concerned with Bitcoin's potential interference with the U.S. government and its high volatility. As Bitcoin's price has been growing rapidly, we assessed Bitcoin's real value; Bitcoin derives value from its scarcity, utility, and public trust. In the conclusion, we discuss Bitcoin's future and conclude that Bitcoin may change from a short-term profit investment to a more steady industry as we identify Bitcoin with the "greater fool theory", and as the number of available Bitcoins to be mined dwindles and technology becomes more expensive.