We analyze how network effects affect competition in the nascent cryptocurrency market. We do so by examining the changes over time in exchange rate data among cryptocurrencies. Specifically, we look at two aspects: (1) competition among different currencies, and (2) competition among exchanges...

Digital currencies have attracted strong interest in recent years and have the potential to become widely adopted for use in making payments. Public authorities and central banks around the world are closely monitoring developments in digital currencies and studying their implications for the...

In this article, we review the recent developments in the digital currency landscape. We survey the economic drivers that led to the creation of digital currencies and show that they are a natural step in the evolution of means of payment. We overview two major classes of digital currencies,...

This paper reviews some recent developments in digital currency focussing on platform-sponsored currencies such as Facebook Credits. In a model of platform management, we find that it will not likely be profitable for such currencies to expand to become fully convertible competitors to...

In this commentary, we argue that studies similar to Cennamo, Marchesi, and Meyer (2020) should distinguish four dimensions of control in blockchain governance, all of which could be more or less decentralized. For some of these dimensions, decentralization is likely beneficial, while for others...

Bitcoin, a cryptocurrency invented in 2008 is both puzzling and inspiring. High volatility of its price is challenges financial analysts as well as scholars. We look at the incentive mechanisms that make Bitcoin work, and we discuss current and potential uses of Bitcoin and technologies inspired...

The technology behind blockchain has attracted a lot of attention. However, this technology is for the most part not well understood. There is no consensus on what benefits it may bring or on how it may fail. A careful look into the technology finds that most of the proposed benefits of so...

Concluding thoughts and outlook for the future of the technology. For Chapter 1 (Introduction), see "https://ssrn.com/abstract=3135021" https://ssrn.com/abstract=3135021. For Chapter 2 (Means of Exchange: Ever-present Competition), "https://ssrn.com/abstract=3135028"...

In this chapter, we discuss economic aspects of cryptocurrencies. 4.1. The double spending problem 4.2. How does Bitcoin work? Brief overview 4.3. Not the first one – predecessors of Bitcoin 4.4. Problems with Bitcoin (new challenges) 4.5. Competition against other crypto-currencies 4.6....