Synthetic commodity money

Selgin, George

doi:10.1016/j.jfs.2014.07.002

Cited by 237 publications

(103 citation statements)

References 10 publications

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“…Currency which has only a digital representation has received a great deal of attention in mainstream media and some attention from economists and lawyers (e.g. Selgin 2013 andGrinberg 2012). A particular currency -Bitcoin -has received most of this attention, although there are alternatives in existence such as Litecoin and proposed currencies such as Ripple.…”

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confidence: 99%

“…Most of them are papers on legal aspects of Bitcoin, its regulation and its role in the payments system, a topic not discussed in this paper. Selgin (2013) argues that Bitcoin and similar currencies are a new phenomenon, which he labels synthetic commodity money because of similarities to commodity money. Luther and Olson make the important point that Bitcoin involves a physical manifestation of memory as in Kocherlakota's theory of money (1998).…”

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confidence: 99%

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The economics of Bitcoin and similar private digital currencies

Dwyer

2015

Journal of Financial Stability

641

255

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confidence: 99%

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confidence: 99%

The economics of Bitcoin and similar private digital currencies

Dwyer

2015

Journal of Financial Stability

641

255

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“…The future will show how much volatility will drop. The fixed supply of virtual currency may suggest its volatility will reflect that of other commodities (see, e.g., Selgin, 2014) rather than that of traditional currencies whose quantities are managed by central banks. Moreover, the model also shows that, conditional upon survival, deflationary virtual currency prices may be expected during the early-adoption stage.…”

Section: Discussionmentioning

confidence: 99%

On the Value of Virtual Currencies

Bolt

Oordt

2016

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. ii Terms of use: Documents in EconStor may AbstractThis paper develops an economic framework to analyze the exchange rate of virtual currency. Three components are important: first, the current use of virtual currency to make payments; second, the decision of forward-looking investors to buy virtual currency (thereby effectively regulating its supply); and third, the elements that jointly drive future consumer adoption and merchant acceptance of virtual currency. The model predicts that, as virtual currency becomes more established, the exchange rate will become less sensitive to the impact of shocks to speculators' beliefs. This undermines the notion that excessive exchange rate volatility will prohibit widespread use of virtual currency. Bank topics: Asset pricing; E-money; Exchange rates JEL codes: E42, E51, F31, G1 RésuméNous construisons un modèle d'analyse pour cerner les facteurs qui influent sur le taux de change des monnaies virtuelles. Trois éléments importent : tout d'abord, l'utilisation actuelle d'une monnaie virtuelle comme moyen de paiement; ensuite, la décision d'investisseurs prospectifs d'acheter de la monnaie virtuelle (et de contrôler ainsi l'offre de ce type de monnaie); enfin, les facteurs qui détermineront ensemble l'adoption d'une monnaie virtuelle par les consommateurs et son acceptation par les commerçants. Selon les prévisions du modèle, lorsqu'une monnaie virtuelle devient plus établie, son taux de change devient moins sensible aux répercussions des changements non anticipés de croyance des spéculateurs. Ce résultat va à l'encontre de l'idée voulant que la très forte volatilité de leur taux de change empêchera la large diffusion des monnaies virtuelles. Sujets : Évaluation des actifs; Monnaie électronique; Taux de change Codes JEL : E42, E51, F31, G1 Non-Technical SummaryThis paper develops a theoretical framework to analyze the economic factors affecting the exchange rate for virtual currency. Virtual currencies, such as Bitcoin, represent both the emergence of a new form of currency and a new payment technology to purchase goods and services. These currencies may move outside the scope of current financial institutions, as they allow distant payments to be made directly between consumers and merchants without the use of any financial intermediaries. Moreover, their supply is not necessarily controlled by central banks, and speculative motives are widely believed to be an important factor for the value of virtual currencies.Sp...

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“…However, using as starting point the analysis done in [42] and [45], there are two major advantages over such currencies: (1) Since renewable sources are inherently distributed and scarce, the economy effects of energy currencies can be designed to only affect local economy, without negatively impacting the macroeconomic stability, (2) Since energy currency creation depends on renewable energy injections, there is no a deflationary behavior. Furthermore, consumed and injected energy balance can be used to properly adjust the total amount of energy money, similarly to the proposed mechanism in [45], where it is suggested that altcoin creation must be ideally linked to nominal gross domestic product to have positive macroeconomic effects. Therefore, the value of energy money will be higher where there are low energy injections and will be lower where there are plenty of local generation, thus acting as a market signal for renewable projects.…”

Section: Energy Currenciesmentioning

confidence: 99%

Financial and environmental benefits of activedistribution networks

Serna-Suárez¹,

Ordóñez-Plata²,

Carrillo-Caicedo³

2018

revuin

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To identify the role and importance of local renewable energy resource integration on power distribution systems, this work presents a survey on how Active Distribution Systems capture benefits from this kind of energy resources. Also, this paper introduces the basic concepts of two economics tools that can help in the environmental valuation of local renewable energy projects, along with a discussion on the role of energy currencies in the development of renewable energy. As a conclusion, thanks to the advent of concepts such as "prosumer" and emergent technologies such as digital currencies, it is possible to achieve financial and economic viability for local renewable energy projects with the aid of Active Distribution Networks.

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Synthetic commodity money

Cited by 237 publications

References 10 publications

The economics of Bitcoin and similar private digital currencies

The economics of Bitcoin and similar private digital currencies

On the Value of Virtual Currencies

Financial and environmental benefits of activedistribution networks

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