Bitcoin, currencies, and fragility

Taleb, Nassim Nicholas

doi:10.1080/14697688.2021.1952702

Cited by 39 publications

(11 citation statements)

References 8 publications

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“…They find that an increasing number of investors are using Bitcoin as a hedging tool against the debasement of currencies and idiosyncratic risks. Taleb (2021) further validates that speculation is common in the Bitcoin market.…”

Section: Market Segmentationsupporting

confidence: 67%

Arbitrage across different Bitcoin exchange venues: Perspectives from investor base and market related events

Shu

Cheng

Han

et al. 2023

Accounting & Finance

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This paper examines the impact of market related events and investor base on the spread of Bitcoin prices between two exchange platforms, Coinbase and Binance. Based on high‐frequency data samples collected from 2019 to 2021, we show how investors from different bases react differently to market related events, which create the price spreads between exchange platforms. We also identify the arbitrage opportunities these spreads create and establish arbitrage strategies for all identified events to exploit the variations in Bitcoin prices traded on both platforms. Findings indicate arbitrage offers profits that are higher overall than holding Bitcoin on either platform.

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Section: Market Segmentationsupporting

confidence: 67%

Arbitrage across different Bitcoin exchange venues: Perspectives from investor base and market related events

Shu

Cheng

Han

et al. 2023

Accounting & Finance

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“…A widespread criticism of bitcoin has emerged over its 14-year history, some petty or unfounded, other highly relevant. − The bitcoin network is criticized for slow transaction speed (∼2–4 transactions per second) , in comparison to the established digital payments systems such as Visa and Mastercard (∼4000–7000 transactions per second) . This unearths an important question: if bitcoin is so much less efficient than existing payment technology, why do we need it?…”

Section: Criticism Of Bitcoinmentioning

confidence: 99%

Renewable Energy Transition Facilitated by Bitcoin

Velický

2023

ACS Sustainable Chem. Eng.

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Reduction of greenhouse gas emissions has been a top priority for activists, scientists, and policy makers across the globe, and it is one of the main drivers for the transition to renewable energy generation. Bitcoin is a decentralized global transaction network of an eponymous digital currency. It has been praised for its openness, decentralization, and censorship resistance, as well as criticized for its inefficiency, criminal use, and enormous electricity consumption. We discuss the challenges in the renewable energy transition, properties of the bitcoin network, and the role of bitcoin mining operations in the global energy production and consumption. Although the adoption path for bitcoin is likely to be volatile with an uncertain outcome, the opportunities offered by bitcoin mining in reduction of the greenhouse gas emissions and renewable energy transition are greater than generally assumed.

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“…First, Bitcoin's critics often point to its volatility, arguing that it "can be neither a short nor long term store of value", and it "does not constitute, not even remotely, a safe haven for one's investments" (Taleb, 2021). Because of this, there is some debate whether it should be considered a currency at all.…”

Section: Waltonmentioning

confidence: 99%

Bitcoin and stone money: Anglophone use of Yapese economic cultures, 1910-2020

Walton

2022

Finance soc.

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Recently parallels have been drawn between Bitcoin and Yapese stone money. This article focuses on Fitzpatrick and McKeon’s (2019) exploration of similarities and differences. The analogy between Bitcoin and Yapese stone money is based on proposed commonalities that are inaccurate, ill-defined, and/or trivial. However, this does not signal a need to refine the comparison, but rather a need to reconsider the rationale for attempting it in the first place. Recent attempts to redefine Yapese stone money using terminology from the field of cryptocurrency reproduces a longer textual history in which writers from the Global North have misrepresented Yap for pedagogic or polemic convenience. Examples include works by William Furness III, John Maynard Keynes, Milton Friedman, and influential macroeconomics textbooks, such as N. Gregory Mankiw’s Macroeconomics. This history features frequent colonialist tropes of Yap as well as the erasure of histories of colonial violence and power. More caution should be exercised in the study and pedagogic use of Yapese economic cultures, and greater effort should be made to center Yapese voices, acknowledge colonial contexts, and reflect positionality and uncertainty.

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Bitcoin, currencies, and fragility

Abstract: A technology should be judged in how it solves recognized problems, not by its technical appeal

Cited by 39 publications

References 8 publications

Arbitrage across different Bitcoin exchange venues: Perspectives from investor base and market related events

Arbitrage across different Bitcoin exchange venues: Perspectives from investor base and market related events

Renewable Energy Transition Facilitated by Bitcoin

Bitcoin and stone money: Anglophone use of Yapese economic cultures, 1910-2020

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