On the Value of Virtual Currencies

By Wilko Bolt, Maarten R. C. van Oordt. Journal of Money, Credit and Banking, 2019

129 citations recorded by the source corpus.

This paper develops an economic framework to analyze the exchange rate of virtual currency. Three components are important. First, the current use of virtual currency to make payments. Second, the decision of forward-looking investors to buy virtual currency (thereby effectively regulating its supply). Third, the elements that jointly drive future consumer adoption and merchant acceptance of virtual currency. The model predicts that, as virtual currency becomes more established, the exchange rate will become less sensitive to the impact of shocks to speculators' beliefs. This undermines the notion that excessive exchange rate volatility will prohibit widespread use of virtual currency.

Subfields: Economics and Econometrics, Information Systems, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/85e39d2d410f3aeee31483d0b5851577c2507186

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Tyler W. Moore
2. J. Hamrick
3. T. Oberman
4. Neil Gandal
5. Andrew Urquhart
6. Emmanouil Platanakis

In Information Systems

1. Tyler W. Moore
2. Neil Gandal
3. Andrew Urquhart
4. Cormac Herley
5. Richard Clayton
6. Emmanouil Platanakis

In Strategy and Management

1. Tyler W. Moore

Citations in the corpus

• Price manipulation in the Bitcoin ecosystem (2018, background): “101 For a more complete review of the literature, see Bonneau et al. (2015) for coverage of technical issues 102 and Böhme et al.”