Cryptocurrencies have emerged as one of the most controversial financial technologies of our era. This dissertation explores the mechanisms of their diffusion and adoption, with a particular focus on the role of Bitcoin in South Korea. Employing robust quantitative empirical research methods alongside the creation of an innovative theoretical model, this thesis establishes a nuanced framework to identify the socio-economic factors influencing the demand for cryptocurrencies. In addition to deepening our understanding of the multi-dimensional dynamics of digital currencies, the research highlights the critical factors that influence the spread of Bitcoin.