Would Bitcoin Relace World Currency in The Future: Analysis Based on Marx's Theory of Monetary Function

Abstract

Bitcoin has received a lot of attention as a cryptocurrency in recent years. The paper focuses on determining if Bitcoin would replace world currency in the future, which compares Bitcoin with the US dollar and gold. The article considers qualitative analysis to discuss the bitcoin's characteristics based on Karl Marx's five different categories in his book Das Kapital: measure value, means of circulation, means of hoarding, means of payment, and universal currency. The paper presents the advantages and disadvantages related to Bitcoin compared to the US dollar and gold. The article finds that Bitcoin is more secure in saving and privacy. Also, it wouldn't be affected by inflation. However, disadvantages are also present when applying Bitcoin in the market. The volatility and value of storing would be a challenge to solve. The lack of population using it and the limitations of transactions would also be problems. The research illustrates that Bitcoin can't replace world currency in the short term, but in the long term, Bitcoin would be the mainstream currency to use in real life due to the performance of people, governments, and the world economy. The article is the first research to utilize Marx's theory to analyze whether Bitcoin could replace world currency in the existing literature. This paper recommends that governments of all countries establish a unified regulatory policy and security mechanism on a global scale to ensure the legitimacy, stability, and security of Bitcoin so that Bitcoin can truly become a world currency.