The Political Economy of Bitcoin

Hendrickson, Joshua R.; Hogan, Thomas L.; Luther, William J.

doi:10.1111/ecin.12291

Cited by 119 publications

(44 citation statements)

References 21 publications

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“…But as argued later, they are less adept at replacing the credit services provided by financial intermediaries. Hendrickson et al (2016) make use of the search and matching framework commonly used in the New Monetarist literature, and develop a model that simultaneously contains government legal tender and Bitcoin. They then investigate the conditions under which a government could deter the use of Bitcoin.…”

Section: Crypto-currency and The Basic Functions Of Moneymentioning

confidence: 99%

Crypto‐currencies – An Introduction to Not‐so‐funny Moneys

Smith

Kumar²

2018

Journal of Economic Surveys

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We introduce the distributed ledger (blockchain) technology of crypto‐currencies. We examine the ‘monetary’ attributes of crypto‐currencies, and describe some of the reasons they have been adopted. The paper discusses the mechanics of Bitcoin – the original crypto‐currency – to illustrate the fundamental elements of decentralized crypto‐currencies. We then provide a high‐level summary of the implications of crypto‐currencies for consumers, financial systems, and for monetary and regulatory authorities. We argue that crypto‐currencies are unlikely to supplant traditional fiat currencies and we anticipate an enduring role for financial intermediaries in facilitating credit.

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Section: Crypto-currency and The Basic Functions Of Moneymentioning

confidence: 99%

Crypto‐currencies – An Introduction to Not‐so‐funny Moneys

Smith

Kumar²

2018

Journal of Economic Surveys

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“…Green and Zhou (1995) and Shi (1996Shi ( , 1997 extend the model to allow for price level considerations. Aiyagari and Wallace (1997), Li and Wright (1998), and Hendrickson et al (2015) allow for government transaction policies. Li (1995) looks at the optimal taxation of fiat money.…”

Section: Exchange Frictionsmentioning

confidence: 99%

Mises and the moderns on the inessentiality of money in equilibrium

Luther

2015

Rev Austrian Econ

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The challenge of rendering monetary exchange intelligible within a Walrasian general equilibrium framework is well known. Perhaps less well known is the difficulty of integrating monetary and exchange economies in decentralized conceptions of equilibrium, of which the evenly rotating economy of Ludwig von Mises (1949) is an early example. After reviewing the prospect for money in the evenly rotating economy, I survey the modern literature on frictions that make money useful for exchange. While exploring techniques commonly used to generate a useful role for money in this environment, I make a distinction between exchange frictions and epistemic frictions. Although theoretical efforts have largely focused on exchange frictions, recent experimental evidence suggests that epistemic frictions warrant further attention. I conclude that Mises should be seen as a pioneer in this literature, though recent advances demonstrate that the set of frictions capable of rendering money useful is much larger than he envisioned.

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“…al. (2015) and Pilkington (2017), view Bitcoin primarily from an economic perspective; they see CCs within a framework of economic market rationality (White 2015), or one combined with political economy (Hendrickson et al 2016). The networked social movement analysis proposed here retains political hierarchy in the CC as authoritative network claim, producing anti-social conflict stemming from the different protocols adopted by the currencies.…”

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confidence: 99%

Crypto‐coin hierarchies: social contestation in blockchain networks

Bousfield

2019

Global Networks

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In this article, I discuss the role of crypto‐coins (CCs) as an explicit response to the 2008 economic crisis. Drawing on networked social movement theory, I outline the tension between blockchain based currencies promoted as horizontal markets of technological innovation and the persistence of hierarchical authority within these networks. By examining the assumptions about authority and regulation that underpin the creation of CCs I argue that the cryptographic responses to the financial crisis understate the persistence of hierarchies in their claims to upset traditional monetary authority. As global networks, blockchain technology faces political challenges from regulators, hegemonic market actors and adherents devoted to particular CCs. Consequently, I draw parallels between CCs and networked social movements to argue that the emergence and proliferation of ‘altcoins’ presents a series of political challenges to the framing of CCs as disruptive technology. The innovative character of CCs relies on tacit and explicit assumptions about politics that social movement theory can help to explain. By examining the altcoins through the concepts of resource mobilization, framing and identity formation, I argue that the dynamics of offline social hierarchies persist and are magnified in the world of CCs.

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The Political Economy of Bitcoin

Cited by 119 publications

References 21 publications

Crypto‐currencies – An Introduction to Not‐so‐funny Moneys

Crypto‐currencies – An Introduction to Not‐so‐funny Moneys

Mises and the moderns on the inessentiality of money in equilibrium

Crypto‐coin hierarchies: social contestation in blockchain networks

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