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

Abstract

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.

Does virtual currency development harm financial stocks’ value? Comparing Taiwan and China markets

“…Similarly, insurance expenses in the insurance industry are also declining due to block chain innovations, IoT (Internet of Things) prevalence, and the opening of online smart insurance contracts (World Economic Forum, 2015). Therefore, Brieske, Garlan, and Sielecki (2016) said that fin-tech is a disruption to financial services technology, breaking the existing financial service structures, and rapidly changing suppliers and consumers (Smith & Kumar, 2018).…”

Co-movement in crypto-currency markets: evidences from wavelet analysis

“…From the literature it is evident that barring a few studies (Bohme et al 2015;Narayanan et al 2016;Smith and Kumar 2018) there is lack of a comprehensive research that addresses the dynamics of crypto-currency market in its isolation. With crypto-currency market evolving as independent market segment, a study of crypto-currency market dynamics in its isolation will be of immense use to both researcher and investors.…”

“…Further, the crypto-currency market, unlike traditional financial markets, has possible unequal distribution of assets. The first-generation miners and investors had relative ease to mine and purchase cryptoassets (Smith and Kumar 2018). With this, there is possibility of engineering price movements.…”

“…Apart from gambling, online gaming, possible money laundering (Moser et.al. 2013) and cross-border transactions, speculation is one of the important motivations associated with crypto-currencies (Smith and Kumar 2018). Glaser et al (2014) argues that utility for crypto assets stems from their appeal as an asset class.…”

An analysis of cryptocurrencies conditional cross correlations

“…Given the burgeoning literature on this topic, we refer to [Corbet et al, 2018a] and [Smith and Kumar, 2018] for excellent reviews of the empirical literature.…”