Bitcoin Revolution: How the digital currency is shaking up the monetary system!

Bitcoin Revolution: How the digital currency is shaking up the monetary system!

The digital currency Bitcoin is entering the discussion about the future of the global monetary system. Deutschlandfunk Nova reports that Bitcoin allows users to transfer funds without the intermediaries of banks or payment service providers. This decentralization of payments is seen by many members of the Bitcoin community not only as a technological innovation, but also as a necessary response to banks' control over the financial system.

According to Aaron Sahr, an economic sociologist at the Hamburg Institute for Social Research, it is mainly white Central Europeans who rarely really feel the power of the banks. Additionally, nearly 1.7 billion people worldwide live without access to bank accounts, often due to a lack of financial resources. This particularly affects the approximately 200 million migrants who support around 800 million relatives. Money transfers across national borders are usually very expensive for these people, while Bitcoin transactions have fees that are independent of location and distance.

The Challenges and Opportunities of Bitcoin

A central argument of Bitcoin supporters is that conventional currencies lose value through constant money creation. This criticism of the inflation of money is also clear in Sahr's lecture entitled "Bitcoin - a currency of freedom? On crypto-liberal criticism of money and the state", which took place on April 24, 2025 in Hamburg. Under the banner “The Constitution of Freedom. Contemporary Democracy Problems,” he addressed the fundamental questions associated with the introduction of cryptocurrencies.

The use of Bitcoin and other cryptocurrencies is also influenced by developments in the financial system. According to the Federal Agency for Civic Education The pursuit of innovation is essential in all economic sectors, especially in the financial sector. The aim is to make processes more cost-effective, efficient and flexible. In a world increasingly relying on digital solutions, access to new technologies is seen as key to reshaping the financial system.

Cryptocurrencies in the financial system

Cryptocurrencies, which emerged with Bitcoin in 2008, have also developed in an environment characterized by mistrust of banks, central banks and government institutions. They are not managed by banks or central banks, but are based on a network of globally distributed computers that use cryptographic technologies to ensure the security of transactions.

The problem of “double-spending” is solved using proof-of-work, which ensures the order of transactions. The process of mining, in which new Bitcoins are generated by solving cryptographic tasks, has become increasingly important in recent years and consumed around 0.55 percent of global energy in 2021.

Cryptocurrencies have become increasingly popular among financial institutions, but they also face challenges such as security concerns related to money laundering, terrorist financing and ransomware. While trading exchanges are considered the most successful business model in the cryptocurrency sector, they are often affected by manipulation and uncertainty.

However, the social goals of the financial system, particularly with regard to ecological and social sustainability, should be in the foreground. There is a risk that the technical innovation of cryptocurrencies will be distracted from the speculative developments that are often the center of attention.

Overall, the debate about Bitcoin and other cryptocurrencies shows the dynamics and complexity of the modern financial system, which brings with it both opportunities and challenges.