Bitcoin: a Money-like Informational Commodity

Bergstra, Jan A.; Weijland, Peter

doi:10.48550/arxiv.1402.4778

Cited by 5 publications

(9 citation statements)

References 18 publications

(38 reference statements)

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“…The conclusions of [9] include the following observations: (i) Bitcoin has positive potential moneyness, (ii) the actual moneyness may fluctuate in time, and (iii) different observers may agree on potential moneyness of a system while disagreeing on precise criteria for actual moneyness.…”

Section: Status Assessment Methodology For Candidate Moniesmentioning

confidence: 99%

“…The approach of [9] to status assessment for Bitcoin, however, is too simple because although one may consider Bitcoin to be money-like, one may also hold the viewpoint that its architecture is flawed to the extent that no matter how its usage characteristics will develop in practice it will not qualify as a money. Below I will try to be more specific about the role of this aspect of assessment of moneyness of Bitcoin, and I will phrase the discussion in terms of what I propose to call the architectural adequacy for moneyness of an MLIC.…”

Section: Status Assessment Methodology For Candidate Moniesmentioning

confidence: 99%

“…An observation made in [9] is that given the conceptual/categorical classification of Bitcoin as a money-like informational commodity the question whether at some stage Bitcoin actually is a money can take all technicalities and all conceivable specifics into account. Even without any modification in architecture, design, or implementation Bitcoin may move from being a non-money (negative moneyness) to being a money (positive moneyness).…”

Section: Assessing Bitcoin As An Instance Of Mlic Assessmentmentioning

confidence: 99%

“…In [9] it has been outlined under what conditions a candidate money may be classified as a money. These conditions are contingent, that is depending on the quantification of the actual state of the underlying system in terms of circulation and in terms of its share of transactions in comparison with transactions for other monies or candidate monies.…”

Section: Moneynessmentioning

confidence: 99%

“…In [9] and subsequently in [21] it has been argued that Bitcoin provides us with a money-like informational commodity (MLIC), while in [1] it has been argued that Bitcoin does not constitute a currency-like informational commodity with the understanding that currencies must necessarily be moneys while some moneys may not be currencies. Both papers provide criteria under which a money-like informational commodity may evolve into an informational money or an informational currency.…”

mentioning

confidence: 99%

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Architectural Adequacy and Evolutionary Adequacy as Characteristics of a Candidate Informational Money

Bergstra

2015

Preprint

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For money-like informational commodities the notions of architectural adequacy and evolutionary adequacy are proposed as the first two stages of a moneyness maturity hierarchy. Then three classes of informational commodities are distinguished: exclusively informational commodities, strictly informational commodities, and ownable informational commodities. For each class money-like instances of that commodity class, as well as monies of that class may exist.With the help of these classifications and making use of previous assessments of Bitcoin, it is argued that at this stage Bitcoin is unlikely ever to evolve into a money. Assessing the evolutionary adequacy of Bitcoin is perceived in terms of a search through its design hull for superior design alternatives.An extensive comparison is made between the search for superior design alternatives to Bitcoin and the search for design alternatives to a specific and unconventional view on the definition of fractions.

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Section: Status Assessment Methodology For Candidate Moniesmentioning

confidence: 99%

Section: Status Assessment Methodology For Candidate Moniesmentioning

confidence: 99%

Section: Assessing Bitcoin As An Instance Of Mlic Assessmentmentioning

confidence: 99%

Section: Moneynessmentioning

confidence: 99%

mentioning

confidence: 99%

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Architectural Adequacy and Evolutionary Adequacy as Characteristics of a Candidate Informational Money

Bergstra

2015

Preprint

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Combining Islamic Equity Portfolios and Digital Currencies: Evidence from Portfolio Diversification

Alaoui

Dchieche

Asutay

2020

Fintech, Digital Currency and the Future of Islamic Finance

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Digital currencies are unregulated and potentially have a destabilizing effect coupled with increased concerns regarding capital gains and losses in a high volatility environment. When added to an equity portfolio, this currency may have a certain driving factors in terms of return and risks in the case of portfolio diversification. In this study, from the Shari'ah angle, we follow the position of Kahf ( 2017) who explained that Bitcoin is considered "Like any other currency". It has to be used under the "same conditions of exchanging currencies". Therefore, we explore the effect of adding digital currencies to Islamic portfolio by relying on the portfolio theory and comparing the risk and the return of Islamic portfolios with and without digital currencies. The results show that the performance of combined portfolios, of Shari'ah compliant stocks and digital currencies, improves; however, this depends more or less on the increase of the return rather than the reduction of total risk. Specifically, digital currencies may have a big role in bringing high risks with speculative effect in portfolio diversification. In the end, we provide some recommendations to investors to secure their Islamic portfolios if they are combined with digital currencies.

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Islamic legal perspectives on digital currencies and how they apply to Jordanian legislation

Albalawee

Al–Fahoum

2023

F1000Res

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Background: The industrial transformation requires a speedy shift to financial digitization. One of the needs for financial digitalization in the study of Islamic contracts and Islamic business law is the use of digital platforms with digital currencies. Regarding the merits and downsides of its Sharia restrictions and its halal certification, which is currently under discussion, digital currencies and perks have generated controversy in Jordan and other Islamic countries. Methods: This study intends to analyze the legal foundations of digital currency from Jordanian and Islamic legal perspectives. The descriptive-qualitative research approach was utilized, and data collection processes included documentation and a literature review. All legal possibilities that may be drawn from Islamic law in order to investigate the legality of digital currencies are explored further and used to obtain the conclusions of this study. Results: A review of Sharia reasons and consideration for the wellbeing of the people suggests that digital currencies in their current form are incompatible with it and must adhere to the stipulations of Islamic finance. Therefore, digital currencies are unsuitable as a store of value or wealth due to their erratic swings, lack of purchasing power, and instant responsiveness to any technical problem, technical penetration, or official circumstance. Due to market instability, digital currencies can't be utilized to defer payments, settle debts, or repay loans. Conclusions: Digital currencies are speculative; not real money. Most of those who have this money are speculators seeking a quick payoff. Sharia views digital currency trading as gambling due to its high degree of volatility. Jordan's government should regulate digital currency use to meet demand. Digital currencies must be addressed under e-commerce laws.

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Bitcoin: a Money-like Informational Commodity

Cited by 5 publications

References 18 publications

Architectural Adequacy and Evolutionary Adequacy as Characteristics of a Candidate Informational Money

Architectural Adequacy and Evolutionary Adequacy as Characteristics of a Candidate Informational Money

Combining Islamic Equity Portfolios and Digital Currencies: Evidence from Portfolio Diversification

Islamic legal perspectives on digital currencies and how they apply to Jordanian legislation

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