Bitcoin: The revolution of the payment system?

Abstract

This paper discusses whether Bitcoin could revolutionise our payment system and replace our cash-based society. The analysis, in an attempt to understand the process of technological change, is based on the technology S-curve. This paper discusses the problems that hinder Bitcoin’s achieving wide adoption, as it has not been well received by international government central banks. Interestingly, the swing of S-curves is not strong enough to cause a paradigm shift. The results have shown parallel S-curve trajectories of electronic money innovations, signifying a move from a cash-based economy toward a less cash-based society. The paper provides useful information to support the diffusion of Bitcoin innovation.