STUDY OF BITCOIN AND CRYPTO CURRENCY ACCEPTANCE AS INVESTMENT AVENUE
Vijyalakshmi
Simran Kumari
Dr. Preeti Sharma
ABSTRACT
Cryptocurrency has emerged as one of the transformative innovations in the modern digital economy, changing traditional systems and ways of financial transaction processing across borders. Among thousands of digital currencies, Bitcoin remains the most influential and widely recognized, which was introduced by Satoshi Nakamoto, a pseudonymous entity, in 2009. Bitcoin runs on a decentralized, peer-to-peer network that eliminates any need for banks, governments, or financial intermediaries. Over time, the idea of cryptocurrency has expanded beyond Bitcoin-their variants, referred to as altcoins, have been developed in their thousands with a variety of characteristics and usages that include smart contracts, DeFi apps, or even digital assets to develop scalability, privacy, and speed in transactions.
This is where Bitcoin and other cryptocurrencies become important, as they have the potential to disrupt the way people think about paying for goods, strategies of investment, and financial inclusion. Digital currencies challenge conventional notions of money by functioning without oversight from a central authority. Yet, there are various disadvantages with cryptocurrencies, such as volatility in valuations, regulatory uncertainty, cybersecurity risks, and environmental debates regarding energy consumption in mining.
The paper examines the historical evolution, technological underpinning, economic importance, and global impact of Bitcoin and cryptocurrencies, the challenges that constrain their wide diffusion, and future prospects for digital currencies as an enabler of decentralized financial systems. Overall, this analysis reveals that although Bitcoin heralded a sea change in digital finance, the broader cryptocurrency ecosystem is currently in a state of rapid evolution, offering a mix of opportunities and challenges for the global economy.
Keyword: Bitcoin, Cryptocurrency, investment avenue, crypto market trends , government policy.
