Cryptocurrencies in the light of money definitions

Abstract

Purpose: The aim of the article is to attempt to assess the phenomenon of digital currencies through the prism of existing money definitions as well as to determine to what extent the existing definitions of money are able to answer the question whether private decentralized digital currencies are money in the traditional sense or are they a completely new phenomenon that cannot be put in the framework of previous definitions of money. Design/methodology/approach: This study provides a critical literature review of the cryptocurrency’s definitions in comparison to traditional money definition. The literature review was intended to determine whether bitcoin could be treated as money. Findings: The findings indicate that all the cryptocurrency definitions quoted in this study demonstrate that bitcoin together with other cryptocurrencies have ceased to be a niche phenomenon as at the time of the definitions being published and that in no way can the novel trend already marked across the world be ignored by pretending it simply does not exist. Originality/value: This article intends to cover the gap observable in the current scientific discourse in the relations between the notions of classic money and digital currencies.