Bitcoin as a National Currency

cryptocurrencies like Bitcoin as possible national currencies is worth
investigating. This study investigates Bitcoin's adherence to currency
criteria and its consequences for GDP development in a certain
country. The mining industry plays a significant role in the GDP of
many countries. The extraction of raw materials such as metals,
minerals, and fossil fuels is essential for producing a wide range of
goods and services. This generates jobs and tax revenues and
supports economic growth. Understanding these processes is critical,
given the ongoing debate about Bitcoin's place in modern economies.
This research looks into Bitcoin's usefulness as a currency and its
possible influence on a certain country's GDP. The results show that
Bitcoin fits the requirements for money, acting as a means of
exchange and a store of value, with features including mobility,
divisibility, commensurability, and fungibility. When examining its
influence on GDP, empirical data indicate that, while currency
appreciation may provide the illusion of stronger GDP growth when
denominated in foreign currency, it damages growth domestically.
According to a neural network study, Bitcoin's large impact on GDP
renders it unsuitable for use as a national currency in the Czech
Republic. Despite matching currency criteria, Bitcoin's adoption
confronts problems such as volatility, a lack of central authority, and
its worldwide nature, which limit its usefulness in promoting national
economic growth. This analysis emphasizes country selection and
length restrictions, finding that Bitcoin's existing position as an
investment instrument restricts its viability as a national currency.