Cryptocurrencies: A Crash Course in Digital Monetary Economics
Preprint
- 3 September 2018
- preprint
- Published by Elsevier BV in SSRN Electronic Journal
Abstract
This paper reviews what cryptocurrencies are, and it frames them within the context of historical monetary experiences and contemporary monetary economics. The paper argues that, as pure duciary private money, cryptocurrencies are a bubble without a fundamental value and that they will not provide, in general, optimal amounts of money or deliver price stability. Nevertheless, cryptocurrencies can play a role in improving the current means of payments and in disciplining central banks into providing better government-run duciary monies.This publication has 33 references indexed in Scilit:
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