The Market for Cryptocurrencies

White, Lawrence H.

doi:10.2139/ssrn.2538290

Cited by 76 publications

(64 citation statements)

References 11 publications

(8 reference statements)

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“…Processing transactions in this manner ensures that a user does not spend the 6. White (2015) compares the market capitalization of bitcoin to supplies of state fiat currencies. With a market capitalization of $5.4 billion, bitcoin is on par with national currencies like the Bahamas dollar ($6.2b), Botswana pula ($5.7b), Ugandan shilling, ($5.3b), and Moldovan leu ($4.5b).…”

Section: Bitcoin and The Governmentmentioning

confidence: 99%

The Political Economy of Bitcoin

2015

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The recent proliferation of bitcoin has been a boon for users but might pose problems for governments. Indeed, some governments have already taken steps to ban or discourage the use of bitcoin. In a model with endogenous matching and random consumption preferences, we find multiple monetary equilibria including one in which bitcoin coexists with official currency. We then identify the conditions under which government transactions policy might deter the use of bitcoin. We show that such a policy becomes more difficult if some users strictly prefer bitcoin because they can avoid other users holding the official currency in the matching process. (JEL C78, E41, E42, E50)

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Section: Bitcoin and The Governmentmentioning

confidence: 99%

The Political Economy of Bitcoin

2015

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“…White () refers to crypto‐currencies as competing private irredeemable monies . Irredeemable crypto‐currencies stand in contrast to redeemable private monies, such as bank deposits.…”

Section: Payment/exchange Mechanismsmentioning

confidence: 99%

“…This means that the program code can be copied and altered to create new crypto‐currencies relatively easily. In 2014, there were estimated to be 500 crypto‐currencies in existence (White, ). By 8 November 2016 coinmarketcap.com identified 705 crypto‐currencies, which had increased further to 1560 currencies as at 8 April 2018.…”

Section: Payment/exchange Mechanismsmentioning

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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“…A few altcoins aim to serve niche constituencies (White 2015). They have been developed with the intention of improving the functionality of the system or just creating a competitive network able to attract new participants encouraged by the possibility of mining new digital coins, while such an option for an average Bitcoin user has become so unlikely that in practice unattainable.…”

Section: Operation Rules Of Decentralized Virtual Currency Schemesmentioning

confidence: 99%