Bitcoin: money or not? : an analysis based on Austrian school of economic thought

The thesis attempts to explore whether bitcoin can be considered to be money from the perspective of the Austrian economic priniciples. The research paper begins with a theoretical section which includes a brief historic projection of the emergence of bitcoin system as the author proceeds to explain its design system in detail. The analysis of bitcoin on the basis of Austrian economic principles is the crux of the research which includes the author’s attempt at drawing a parallel between bitcoins and fiat currencies. The author further goes on to describe the functions of money on the basis of the framework laid out by the Austrian school. A major portion of the criticism of bitcoin as a medium of exchange comes from the apparent violation of the regression theorem which Mises devised to explain the emergence of money. An attempt will be made to demonstrate how bitcoin may not necessarily violate the regression theorem and in fact may just be a form of money, if not an alternative to it. In order to reach the goals of the research, online survey has been conducted and literatures have been reviewed. Various secondary data have been collected also. The target of the research was to investigate whether bitcoin, a digital token created in a completely digital age falls in line with the monetary definition mapped out by the ancient economic principles. The research highlights the status of bitcoin by gauging the extent of its function as a medium of exchange