The disruptive potential and legal ramifications of these decentralized currencies are causing economies all over the world to struggle as digital assets gain popularity. One prominent decentralized currency with respect to its price development and impressive utilities, is the Bitcoin (BTC) that invented in 2008 by a Satoshi Nakamoto. Previous studies examine different aspects of cryptocurrencies, especially focusing more on empirical examination of historical data to describe price behaviours and the economic implications. They undermine the need for a thorough discussion on the theoretical concepts of cryptocurrencies. The study offers a theoretical perspective on the issues of blockchain, bitcoin and more generally, cryptocurrency. Amongst others, the paper recommends the need for the establishment of a Bitcoin insurance in form of a Decentralised Insurance Product that would assure investors of the safety of funds invested in Bitcoin.