This paper examines
the resilience of Bitcoin’s architecture, highlighting its cryptographic
security, decentralized structure, and economic principles. By tracing a
transaction's journey from the mempool to confirmation on the blockchain, the
study reveals how Bitcoin maintains reliability in a trustless environment. The
principle of “hard money” is enabled by algorithmic cap on Bitcoin's supply.
The Cantillon effect is avoided by distributing new supply via a cryptographic
lottery. The decentralized network eliminates single points of failure, while
the use of double-entry accounts enhances transparency and mitigates fraud
risks. These features collectively make Bitcoin a robust digital currency,
despite its price volatility.
