Open AccessPosted Content
The False Premises and Promises of Bitcoin
TLDR
A set of recommendations to change finance are provided in the Afterword: Investment/venture banking for the masses; Venture banking to bring back what investment banks once were; Open-outcry exchange for all CDS contracts; Attempting to develop CDS type contracts on investments in startup and existing enterprises; and improving the connection between startup tech/ideas, business organization and investment.Abstract:
Designed to compete with fiat currencies, bitcoin proposes it is a crypto-currency alternative. Bitcoin makes a number of false claims, including: solving the double-spending problem is a good thing; bitcoin can be a reserve currency for banking; hoarding equals saving, and that we should believe bitcoin can expand by deflation to become a global transactional currency supply. Bitcoin's developers combine technical implementation proficiency with ignorance of currency and banking fundamentals. This has resulted in a failed attempt to change finance. A set of recommendations to change finance are provided in the Afterword: Investment/venture banking for the masses; Venture banking to bring back what investment banks once were; Open-outcry exchange for all CDS contracts; Attempting to develop CDS type contracts on investments in startup and existing enterprises; and Improving the connection between startup tech/ideas, business organization and investment.read more
Citations
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Journal ArticleDOI
Can volume predict Bitcoin returns and volatility? A quantiles-based approach
TL;DR: In this article, a non-parametric causality-in-quantiles test was employed to analyse the causal relation between trading volume and Bitcoin returns and volatility, over the whole of their respective conditional distributions.
Journal ArticleDOI
The digital agenda of virtual currencies: Can BitCoin become a global currency?
TL;DR: It is suggested that as long as BitCoin price will be mainly driven by speculative investments, BitCoin will not be able to compete with standard currencies.
Journal ArticleDOI
Cryptocurrency Value Formation: An Empirical Analysis Leading to a Cost of Production Model for Valuing Bitcoin
Adam Hayes,Adam Hayes +1 more
TL;DR: In this article, the authors identify the likely determinants for cryptocurrency value formation, including for that of Bitcoin, and propose a regression model that points to three main drivers of cryptocurrency value: the level of competition in the network of producers, the rate of unit production, and the difficulty of algorithm used to “mine” for the cryptocurrency.
Journal ArticleDOI
Using an artificial financial market for studying a cryptocurrency market
TL;DR: In this article, the authors present an agent-based artificial cryptocurrency market in which heterogeneous agents buy or sell cryptocurrencies, in particular Bitcoins, in which there are two typologies of agents, Random Traders and Chartists, which interact with each other by trading Bitcoins.
Posted Content
Blockchains and Bitcoin: Regulatory Responses to Cryptocurrencies
TL;DR: This paper examines Bitcoin from a legal and regulatory perspective, answering several important questions and producing useful and semi-permanent findings into the usefulness of virtual currencies in general, blockchains as a means of mining currency, and the profundity of Bitcoin as compared with the development of block chain technologies.
References
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Book ChapterDOI
Majority Is Not Enough: Bitcoin Mining Is Vulnerable
Ittay Eyal,Emin Gün Sirer +1 more
TL;DR: The Bitcoin cryptocurrency records its transactions in a public log called the blockchain, and conventional wisdom asserts that the mining protocol is incentive-compatible and secure against colluding minority groups.
Book ChapterDOI
Quantitative Analysis of the Full Bitcoin Transaction Graph
Dorit Ron,Adi Shamir +1 more
TL;DR: In this article, a variety of interesting questions about the typical behavior of Bitcoin users, including how they acquire and how they spend their bitcoins, the balance of bitcoins they keep in their accounts, how they move bitcoins between their various accounts in order to better protect their privacy.
Posted Content
Majority is not Enough: Bitcoin Mining is Vulnerable
Ittay Eyal,Emin Gün Sirer +1 more
TL;DR: In this paper, the authors show that the Bitcoin protocol is not incentive-compatible and present an attack with which colluding miners obtain a revenue larger than their fair share, which can have significant consequences for Bitcoin: Rational miners will prefer to join the selfish miners, and the colluding group will increase in size until it becomes a majority.
Proceedings ArticleDOI
A fistful of bitcoins: characterizing payments among men with no names
Sarah Meiklejohn,Marjori Pomarole,Grant Jordan,Kirill Levchenko,Damon McCoy,Geoffrey M. Voelker,Stefan Savage +6 more
TL;DR: From this analysis, longitudinal changes in the Bitcoin market are characterized, the stresses these changes are placing on the system, and the challenges for those seeking to use Bitcoin for criminal or fraudulent purposes at scale are defined.
Book
Extraordinary Popular Delusions and the Madness of Crowds
TL;DR: A new edition of the timeless classic is published in 2017 as mentioned in this paper, with a new cover and a new introduction of a new comic book cover, which is based on this book.