Cryptocurrency as a Mean of Future Exchange – Myth or Real?

Özkan Bülbül

Bachelor's thesis

Abstract:

The final goal of the following thesis is to come up with a particular conclusion of whether the cryptocurrency can some point of time in the nearest future become a real mean of exchange and fully substitute the physical money that are being used on daily basis. The side objective of the following thesis is to come up with a particular theory based on the induction and deduction method, this theory will try to categorize the nature of the domestic economy of El Salvador following their acceptance of cryptocurrency as an official mean of exchange. The main methodological method of the following thesis lies in splitting the work into two separate sections – theoretical part and the practical one. The author takes an insight into the background of cryptocurrencies and recent studies related to it. In the practical part, the author will perform a case study on the country called “El Salvador” and assess if the economy is better or worse after accepting the cryptos as legal tender. Also, the author will conduct the series of personal interviews with people from El Salvador in order to come up with relevant theory on the way how did cryptos really changed the welfare of the ordinary people. Based on the case study of El Salvador, the author concludes that the decision of adoption Bitcoin was a bad decision and the country should revert it as soon as possible unless it will have to call a technical default due to diminishing amount of reserves available to the country. Consequently, the author also concludes that as of 2022-2023, there is no way for cryptocurrencies to substitute fiat money.

Keywords

cryptocurrency, fiat money, legislation

Language used: English

Date on which the thesis was submitted / produced: 13. 3. 2023

Thesis defence

• Date of defence: 15. 5. 2023
• Supervisor: Jared Daniel Jacques
• Reader: John McKeown

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Business Administration