The State of Cryptocurrencies, Their Issues and Policy Interactions

Abstract

This paper focuses on the evolution of cryptocurrencies. It traces the history of early cryptography, the ‘cypherpunk’ movement, and how the work of some cyber libertarians and cryptographers enabled the emergence of popular cryptocurrencies. The paper then focuses on Bitcoin. It delves into the technology behind the Bitcoin architecture and shows how exactly this technology works. The paper then does an analysis of security and regulatory considerations that affect the growth of Bitcoin-based businesses. The paper concludes with some suggestions for future work in the area.