Bitcoin, since its birth in 2009, has been subject to large debates on multiple dimensions, especially on the question whether it embodies a viable monetary alternative to fiat currencies. Previous...Show moreBitcoin, since its birth in 2009, has been subject to large debates on multiple dimensions, especially on the question whether it embodies a viable monetary alternative to fiat currencies. Previous research has suggested that in countries dealing with severe inflation, Bitcoin can indeed have helpful monetary implications. This thesis is concerned partly with finding out the exact relationship between inflation and Bitcoin usage via regression analysis, as empirical support for the notion that they are positively associated is currently lacking. Additionally, a case study considering Argentina is conducted to gain a deeper understanding about the possible correlation between inflation and Bitcoin usage. Argentina is an example of a country under enormous inflationary pressure, and the literature indicates that Bitcoin is being used here to evade value losses from depreciation of the domestic currency. Two ways can be deduced from theory about the exact way Bitcoin fulfills this role, involving either its “store of value” or its “vehicle currency” function. Via a survey design combined with a content analysis, there is aimed to identify which role is more significant in the Argentinian context. Finally, there is reflected on the findings in the light of preceding theory, and implications are discussed for a range of different actors.Show less
