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Is Bitcoin the Only Cryptocurrency in the Town? Economics of Cryptocurrency And Friedrich A. Hayek

15 Pages Posted: 7 Mar 2014

See all articles by Mitsuru Iwamura

Mitsuru Iwamura

Waseda University - Graduate School of Commerce

Yukinobu Kitamura

Rissho University, Data Science Department; Hitotsubashi University - Institute of Economic Research

Tsutomu Matsumoto

Yokohama National University, Faculty of Environment and Information Sciences

Date Written: February 28, 2014

Abstract

This paper overviews the entire landscape of Bitcoin-like cryptocurrencies. Bitcoin has not emerged out of cryptocurrency competition, but rather became a dominant currency as the first broad market based cryptocurrency. But there are more than a hundred of cryptocurrencies in the market, and some are catching up to Bitcoin. This is a healthy sign of currency competition á la Hayek. Through this competition new technological and security innovations may emerge. In this paper, we point out potential problems with Bitcoin and propose some ideas for an alternative cryptocurrency.

Keywords: Bitcoin, Cryptocurrency, Friedrich A. Hayek

JEL Classification: B31, E42, E51

Suggested Citation: Suggested Citation

Iwamura, Mitsuru and Kitamura, Yukinobu and Matsumoto, Tsutomu, Is Bitcoin the Only Cryptocurrency in the Town? Economics of Cryptocurrency And Friedrich A. Hayek (February 28, 2014). Available at SSRN: https://ssrn.com/abstract=2405790 or http://dx.doi.org/10.2139/ssrn.2405790

Mitsuru Iwamura

Waseda University - Graduate School of Commerce

1-6-1, Nishi-Waseda
Shinjyuku, Tokyo, 169-8050
Japan

Yukinobu Kitamura (Contact Author)

Rissho University, Data Science Department ( email )

Magechi 1700
Kumagaya, Saitama 3600194
Japan
+81485391426 (Phone)
+81485362522 (Fax)

Hitotsubashi University - Institute of Economic Research ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8306
Japan
81425808394 (Phone)
81425808394 (Fax)

Tsutomu Matsumoto

Yokohama National University, Faculty of Environment and Information Sciences ( email )

Tokiwadai, Hodogaya-Ku, Yokohama
Yokohama, Kanagawa
Japan

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