Is Bitcoin the Only Cryptocurrency in the Town? Economics of Cryptocurrency And Friedrich A. Hayek

Iwamura, Mitsuru; Kitamura, Yukinobu; Matsumoto, Tsutomu

doi:10.2139/ssrn.2405790

Cited by 37 publications

(19 citation statements)

References 8 publications

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“…It is such drawbacks that limit people from using it as a hardcore currency. The economic rationales are required in the long run for bitcoin to become a currency or asset (Iwamura et al 2014a;b). New users generally do not intend to spend Bitcoin currency for buying goods and services as indicated in studies by Glaser et al (2014) and is instead more widely used as speculative instruments (Kajtazia and Moro 2019).…”

Section: Bitcoin As Currency Vs Assetmentioning

confidence: 99%

Bitcoin in the economics and finance literature: a survey

Kayal

Rohilla

2021

SN Bus Econ

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This paper provides a review of the literature on key matters related to the popular cryptocurrency Bitcoin. Another key motivation of this paper is to understand the underlying principle of this digital currency from the economic and financial point of view. For the survey to be comprehensive, the paper is categorized into varied themes: price dynamics, volatility, bubble dynamics, mode of recognition in the financial market, efficiency, economics, social media and investor sentiment, and lastly regulation and legality. We argue that Bitcoin is still in an embryonic phase and needs to evolve with time especially keeping in pace with technological advancements. It should be robust to get accepted as an alternative currency and be able to prevent any fraudulent exploitation.

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Section: Bitcoin As Currency Vs Assetmentioning

confidence: 99%

Bitcoin in the economics and finance literature: a survey

Kayal

Rohilla

2021

SN Bus Econ

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“…This technology will be essentially differs from the Blockchain, which is used in the majority of other cryptocurrencies. Literally, Blockchain means the chain of blocks [30,31]. Block is the sequence of transactions.…”

Section: Technology In the Networkmentioning

confidence: 99%

Decentralized Social and Economic Network as an Alternative Economic Relations Development In Society

Nekrasenko¹

2019

IJATCSE

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The existing global economic system shows its insolvency and inability to cope with the challenges of modernity. We suggest considering the decentralized social and economic network as alternative of economic development. This network's purpose is the achievement stable equilibrium by means of creation free economic space based on the peer-to-peer technology. The main idea consists in creation of virtual space for interaction and cooperation on the Internet to provide the global opportunities using Human knowledge, resources and technologies with the simultaneous analysis of probable events and calculation of the most optimum actions for solution of tasks of any scales and directions. It is proposed to use the referral links to register in the network, and the systems of bonuses to encourage users improve the network. It is considered the possibility to use internal digital currency for financial transactions in the network. All events occurring in the network is proposed to record for the control financial transactions and accumulation knowledge, technologies and useful information.

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“…Gomez-Gonzalez/Parra-Polania (2014) emphasise the high volatility of the Bitcoin price and its impact on the Bitcoin as a speculation asset, whereas Luther/White (2014) discuss the possibility of the Bitcoin becoming a major currency. Iwamura et al (2014) and Rogojanu/Badea (2014) draw parallels between the competition of virtual and national currencies based on Hayek's theory of competing currencies. Additionally, Gandal/Hałaburda (2014) control the network effects in their model and Bornholdt/Sneppen (2014) adapt a dynamited model.…”

Section: Literature Overviewmentioning

confidence: 99%

Central Bank Behaviour Concerning the Level of Bitcoin Regulation as a Policy Variable

Sauer¹

2015

AJBE

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Bitcoin gains more and more attention in the general public and is already the most popular virtual currency. At the same time, the acceptance of Bitcoin as a speculative asset and also as a payment vehicle increases. This is an indication that we might now be entering an era of parallel currency systems. Therefore, one could state that the Bitcoin network and the central banking system could become two rival systems with respect to issuing payment vehicles and providing cross-border payment systems. Our aim is to analyse the central bank incentives for establishing a network model that includes hacking. With our model we are able to explain why central banks have no incentive to advance Bitcoin regulation at the current stage of development, as this would reduce the critical mass of Bitcoin users. Finally, in combination with a central bank loss function, we are able to calculate an optimal level of central regulation.

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Is Bitcoin the Only Cryptocurrency in the Town? Economics of Cryptocurrency And Friedrich A. Hayek

Cited by 37 publications

References 8 publications

Bitcoin in the economics and finance literature: a survey

Bitcoin in the economics and finance literature: a survey

Decentralized Social and Economic Network as an Alternative Economic Relations Development In Society

Central Bank Behaviour Concerning the Level of Bitcoin Regulation as a Policy Variable

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