The digital money and payment systems Bitcoin has caused a lot of speculation in the past few years. However, the electronic commerce has been slow in accepting Bitcoin as a way of payment due to its dubious fame and inherent risks. The purpose of this Bachelor’s thesis was to find the risks and benefits of Bitcoin in the field of electronic commerce. The secondary purpose of the study was to find out what kind of improvement suggestions have been made to make Bitcoin a more feasible form of payment. The most crucial benefits found were low transaction costs particularly in the micropayment market, and the further development opportunities presented by the technology that Bitcoin is based on. The greatest risks found were the economic weaknesses of the currency, which are high volatility and deflation, and security risks in the Bitcoin marketplaces, which make it difficult to utilize as a form of payment. However, based on the source material, multiple improvement suggestions were found. The most central finding was that currently the weaknesses of Bitcoin hinder its usage in e-commerce and partially underscore its strengths.