On the Value of Virtual Currencies

Bolt, Wilko; Oordt, Maarten van

doi:10.1111/jmcb.12619

Cited by 99 publications

(54 citation statements)

References 38 publications

(38 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Hayes (2017) advocates the cost of production view on cryptocurrency pricing; yet, as we discussed earlier, from a market equilibrium perspective, being sunk cost (as in Dwyer 2015), it does not matter for the pricing of existing coins. 14 A concurrent work by Bolt and Van Oordt (2019) outlines three key elements of the cryptocurrency value: convertibility into fiat money or ability to buy goods and services, investors' expectations, and factors that determine acceptance of the cryptocurrency in the future, by both vendors and buyers. Simultaneously, Schilling and Uhlig (2019) offer a model where cryptocurrencies are a reliable medium of exchange and compete against fiat money: this role implies the current price of cryptocurrencies is the expectation of their future value (a martingale), yet interestingly, competition and substitutability between the two imply in their analysis cryptocurrencies should disappear in the long run equilibrium.…”

Section: Discussionmentioning

confidence: 99%

Cryptocurrencies: market analysis and perspectives

2019

View full text Add to dashboard Cite

The papers in this special issue focus on the emerging phenomenon of cryptocurrencies. Cryptocurrencies are digital financial assets, for which ownership and transfers of ownership are guaranteed by a cryptographic decentralized technology. The rise of cryptocurrencies' value on the market and the growing popularity around the world open a number of challenges and concerns for business and industrial economics. Using the lenses of both neoclassical and behavioral theories, this introductory article discusses the main trends in the academic research related to cryptocurrencies and highlights the contributions of the selected works to the literature. A particular emphasis is on socio-economic, misconduct and sustainability issues. We posit that cryptocurrencies may perform some useful functions and add economic value, but there are reasons to favor the regulation of the market. While this would go against the original libertarian rationale behind cryptocurrencies, it appears a necessary step to improve social welfare.

show abstract

Section: Discussionmentioning

confidence: 99%

Cryptocurrencies: market analysis and perspectives

2019

View full text Add to dashboard Cite

show abstract

“…They argue that this means that financial regulations including knowyour-customer regulations can have a non-negligible impact on the bitcoin market. Bolt and Oordt (2016) develop an economic framework to investigate the exchange rate of a virtual currency. Their model shows that the exchange rate will become less sensitive to the impact of speculative behaviour with more widespread use of the virtual currency.…”

Section: Cryptocurrencies: Economicsmentioning

confidence: 99%

Fintech and the Future of Financial Services: What Are the Research Gaps?

Kavuri¹,

Milne²

2019

SSRN Journal

View full text Add to dashboard Cite

New financial technologies (FinTech) have erupted around the world. Consequently, there has been a considerable increase in academic literature on FinTech over the last five years. Research tends to be scantily connected with no coherent research agenda. Significant research gaps and important questions remain. There is much work to be done before this area becomes an established academic discipline. This paper offers coherent research themes formulated through focus group meetings with policymakers and academics, and also based on a critical assessment of the literature. We outline seven key research gaps with questions that could form the basis of academic study. If these are addressed it would help this area become an established academic discipline. AbstractNew financial technologies (FinTech) have erupted around the world.Consequently, there has been a considerable increase in academic literature on FinTech over the last five years. Research tends to be scantily connected with no coherent research agenda. Significant research gaps and important questions remain. There is much work to be done before this area becomes an established academic discipline. This paper offers coherent research themes formulated through focus group meetings with policymakers and academics, and also based on a critical assessment of the literature. We outline seven key research gaps with questions that could form the basis of academic study. If these are addressed it would help this area become an established academic discipline.

show abstract

“…Studies of the drivers of Bitcoin prices have often concluded that speculation is one of, or even the main, driver, [4][5][6][7][8][9] and this is partly driven by publicity, both negative and positive, which is partly spread by social media. 10 With the value of Bitcoin changing so much it is not surprising that it is hard to find goods and services with an advertised price in BTC, even if BTC is an acceptable form of payment.…”

Section: Cryptocurrency Performance As Moneymentioning

confidence: 99%

Economic Simulation of Cryptocurrencies and Their Control Mechanisms

Mainelli¹,

Leitch

Demetis

2019

ledger

View full text Add to dashboard Cite

A cryptocurrency needs a relatively stable value if it is to fulfill the traditional functions of money and be useful as a currency. To achieve this, controls are needed within the ecosystem of the cryptocurrency. Although a simulation cannot predict future currency rates or other variables exactly, it is argued that a model that simulates a range of challenging behavior can be a useful testbed for control schemes. To illustrate and explore this idea, an agent-based economic model was used to simulate the early period of a hypothetical cryptocurrency and test two control mechanisms. The results suggest that this approach may be fruitful and that it may be important to include more than just coin minting within the control scheme. An economic simulation model is likely to be a valuable tool in developing and regulating effective cryptocurrency systems.

show abstract

On the Value of Virtual Currencies

Cited by 99 publications

References 38 publications

Cryptocurrencies: market analysis and perspectives

Cryptocurrencies: market analysis and perspectives

Fintech and the Future of Financial Services: What Are the Research Gaps?

Economic Simulation of Cryptocurrencies and Their Control Mechanisms

Contact Info

Product

Resources

About