Navigating the Bitcoin Wave: An In-depth Examination of its Advantages and Drawbacks in the Contemporary Economic Landscape

Abstract

This research delves into the economic implications of Bitcoin, a decentralized digital currency, with a specific focus on its notable surge of 65,000 USD in November 2021. Examining factors such as Bitcoin's supply dynamics, market demand, investor sentiment, and its competitive landscape vis-à-vis other cryptocurrencies, the study aims to elucidate the economic benefits and drawbacks associated with the adoption of Bitcoin payment systems. Despite its facilitation of swift cross-border transactions, the research underscores concerns related to data security as a major challenge. Employing a quantitative approach, utilizing statistical analysis through SPSS, the study establishes robust dependencies among key economic variables. The findings contribute valuable insights into the transformative effects of digital currencies on economic transaction methods, emphasizing the necessity for cautious consideration of associated challenges within the economic landscape. Ultimately, this research achieves its economic objectives by shedding light on Bitcoin's pivotal role and impact on economic transactions in the digital era.