In my thesis, I analyze the economic impact of cryptocurrencies through examining how they are re-shaping the world's financial system. This is a very current and relevant issue, taking into consideration how rapidly technology is evolving and new defining trends are emerging. Essentially, one of the main objectives of my research is to reveal whether a crypto-reform is expected to happen in the foreseeable future, as a result of which the new monetary system would be based on virtual currencies. Focusing on the cryptocurrency with the greatest market dominance, I inspect Bitcoin from a monetary perspective, evaluating its effects. In order to explain why this particular currency is quite controversial in its perception, I take the primary functions of money into account and determine through case studies to what extent Bitcoin can satisfy these requirements. The purpose of this is to figure out if the hypothetical cryptocurrency-based monetary system could be potentially built on Bitcoin.