Introduction
Bitcoin has emerged as a groundbreaking innovation at the intersection of technology, economics, and finance. Since its inception in 2008, it has sparked extensive academic research exploring its price dynamics, market behavior, investment potential, and regulatory challenges. This survey synthesizes key findings from over 100 studies to provide a structured overview of Bitcoin’s role in modern financial systems.
Key Research Themes
1. Price Determinants and Volatility
- Market Sentiment: Studies by Kristoufek (2015) and Garcia et al. (2014) link Bitcoin prices to Google search trends and social media activity.
- Supply Constraints: The fixed supply of 21 million coins creates scarcity, influencing long-term valuation (Cheah & Fry, 2015).
- Macro Factors: Geopolitical risks and economic policy uncertainty significantly impact volatility (Aysan et al., 2019).
2. Bitcoin as an Investment Asset
- Portfolio Diversification: Bitcoin shows low correlation with traditional assets like stocks and gold, offering diversification benefits (Brière et al., 2015).
- Hedging Properties: Acts as a partial hedge against currency fluctuations (Urquhart & Zhang, 2019).
3. Market Efficiency
- Mixed evidence exists: Some studies (Urquhart, 2016) find inefficiencies, while others highlight improving maturity (Sensoy, 2019).
4. Regulatory and Security Challenges
- Concerns include price manipulation (Gandal et al., 2018) and money laundering risks (Möser et al., 2014).
FAQs
Q: Is Bitcoin a safe-haven asset like gold?
A: While Bitcoin exhibits some safe-haven properties during crises (Bouri et al., 2020), its high volatility limits reliability compared to gold.
Q: How does Bitcoin’s energy consumption affect its economics?
A: Proof-of-work mining raises sustainability concerns, potentially influencing long-term adoption (Schilling & Uhlig, 2019).
Q: Can Bitcoin replace fiat currencies?
A: Current research suggests it’s unlikely due to scalability and regulatory hurdles (Yermack, 2015).
Future Research Directions
- CBDCs vs. Bitcoin: Explore competitive dynamics with central bank digital currencies.
- Institutional Adoption: Assess impacts of ETF approvals and corporate treasury holdings.
👉 Explore Bitcoin’s latest market trends
👉 Learn about blockchain technology advancements
Conclusion
Bitcoin remains a polarizing yet transformative asset class. This survey underscores its dual nature: a speculative vehicle with unique financial applications and a subject of ongoing academic debate. Future studies must address scalability, regulation, and environmental concerns to unlock its full potential.
Keywords: Bitcoin, cryptocurrency, portfolio diversification, market efficiency, blockchain, volatility, regulation.