Bitcoin: The currency of the future or a tool for speculation?

The gain in the popularity of Bitcoin and recent sharp price volatility enhanced the interest of various individuals toward Bitcoin. The recent discussion of various authors on the Bitcoin brought some doubts in the future of cryptocurrency. Some authors considered it as money of the future while others criticize it as being a speculative vehicle that will be abandoned in future. The purpose of this article is to show the opposing views in the existing literature and identify whether Bitcoin is used as a tool for speculation or currency. This study focusses mainly on the money function of Bitcoin and breach of one of the most important features which is stability as a result of usage it for the purpose of speculative profit gain. The result of this study found that Bitcoin is used as a tool for speculation and considered unstable asset. If the current status of the currency remains the same, the Bitcoin will not be a currency. Further technological advancement, modifications, and regulations should be directed towards the centralization of Bitcoin in order to maintain stability and its future usage as currency.