Blockchain Papers

Tai‐Wei Hu

No abstract is available for this record.

RAONI DO NASCIMENTO GONZAGA

O conceito de moedas descentralizadas vem sendo amplamente dissemi-

Arūnas Lapinskas, Arūnas Lapinskas

The article discusses the main technological and economic aspects of the functioning of cryptocurrencies. Based on the analysis of monetary theories and the evolution of forms of money, it is shown that the technologies of mining and circulation of cryptocurrencies fully meet the requirements for "monetary material" and the trend in the development of monetary systems. It is concluded that the development of the form of money under the influence of scientific and technological progress has not changed their economic essence. The pros and cons of cryptocurrencies are shown. The problem of the legitimacy of cryptocurrencies is analyzed taking into account the new federal legislation.

Matheus Trotta Vianna

Bitcoin got increasing popularity and was considered by the public as a great investment due to huge overvaluation in 2017. In parallel, economists and high-level technicians started to advocate the use of bitcoin and other cryptographic currencies as an alternative to national currencies. However, bitcoin is far from being considered as money, so it is hard for a monetary and payment system to emerge based on these technologies. This paper, apart from briefly presenting the Bitcoin System, shows why bitcoin is not money in the light of the Keynesian theory. We use Keynesian essential properties of Money and Modern Money Theory to define money, and to show that cryptographic currencies are not money. We then go back to Keynes' theory of portfolio choice, established in Chapter 17 of the General Theory, to show what bitcoin really is: at most, bitcoin is a perfect virtual commodity, a virtual liquid speculative asset.

Genisson dos Santos Pinheiro, Alvani Bomfim de Sousa Júnior, Josivan dos Santos Moura

Este artigo tem o propósito de compreender questões pertinentes a respeito do contexto econômico da Criptomoeda Bitcoin, tanto no cenário mundial quanto no cenário nacional. Levando em consideração dados históricos e projeções futuras, fazendo também, uma análise fundamentalista dos princípios de tal Criptomoeda. O estudo em questão busca mostrar uma nova forma de investimento para pessoas que buscam potencializar seus rendimentos financeiros através de renda variável, ou seja, de um investimento que aproveita a volatilidade do mercado para adquirir rentabilização. Além do exposto, este estudo também aborda os conceitos voltados a compreensão do Bitcoin e das Criptomoedas, trazendo uma relação com a economia tradicional e desvendando qual é o público-alvo desse novo mercado, além de assimilar os principais motivos pelos quais esse público faz essas aplicações. A metodologia utilizada no desenvolvimento deste trabalho foi a partir da pesquisa bibliográfica e web bibliográfica.

Warren E. Weber

This paper imagines a world in which countries are on the Bitcoin standard, a monetary system in which all media of exchange are Bitcoin or are backed by it. The paper explores the similarities and differences between the Bitcoin standard and the gold standard and describes the media of exchange that would exist under the Bitcoin standard. Because the Bitcoin standard would closely resemble the gold standard, the paper explores the lessons about how it would perform by examining the classical gold standard period, specifically 1880–1913. The paper argues that because there would be virtually no arbitrage costs for international transactions, countries could not follow independent interest rate policies under the Bitcoin standard. However, central banks would still have some limited ability to act as lenders of last resort. Based on the experience during the classical gold standard period, the paper conjectures that there would be mild deflation and constant exchange rates under the Bitcoin standard. The paper also conjectures how long the Bitcoin standard might last if it were to come into existence.

Juan Guillermo Lazo Lazo, Gonzalo Herrera, Luciana Faleti Almeida, Alvaro Talavera

Os mercados de criptomoedas vem chamando a atenção e atraindo todo tipo de investidores, desde pessoas até instituições financeiras, buscando altos retornos resultado de la significativa variação dos preços e a sua rápida valorização. No entanto, esse mercado é caracterizado pelo nível de volatilidade e incerteza, levando os preços a níveis muito altos e também a níveis baixos, estas características geram uma grande dificuldade para a toma de decisões dos gestores de investimentos. Este artigo propõe um sistema híbrido para a tomada de decisões no gerenciamento de investimentos no mercado de criptomoedas, considerando um perfil de investimento conservador, que busca reduzir o risco e maximizar o retorno do investimento. A metodologia visa, com base no preço histórico das criptomoedas, estabelecer níveis de retorno e estimar as probabilidades de transição dos retornos para cada nível, isso é feito com base na análise das cadeias de Markov, que são integradas nas múltiplas árvores de decisão para identificar a criptomoeda que projeta o maior retorno futuro, considerando que será vendida em um ou dois períodos após a aquisição. Os resultados são comparados com os dados reais e comprova-se a eficiência da metodologia.

Makoto Saito

No abstract is available for this record.

John Taskinsoy

No abstract is available for this record.

Juliusz F. Radwanski

No abstract is available for this record.

Andreas Veneris, Andreas Park, Fan Long, Poonam Puri

No abstract is available for this record.

Richard Fast

This literature review covers hyperinflation in Venezuela, from the 1980s to the present. Particular emphasis is placed on the role of cryptocurrency in the country and how the Venezuelan government has been using crypto, specifically the Petro, as a means to avoid further blunders with hyperinflation. From Hugo Chávez and “Socialism of the 21st Century” to the current regime of Nicolás Maduro, Chávez’ successor, the printing of money in Venezuela has sky-rocketed to the point of the government needing cryptocurrency, such as Bitcoin, as a means of circumventing inflation to fund the government’s ambitious social projects. A key element in its success, however, will be whether the Venezuelan people will opt to use the government-backed Petro, or whether they will opt to use a different, decentralized alternative digital currency to avoid the perils of hyperinflation. The paper will examine this issue from several diverse points of view: specifically, the Austrian School (Echarte Fernández, Hernández, & Zambrano, 2018), the neo-Keynesian school (Pagliacci & Barráez, 2010), and public policy and institutional perspective (Corrales, 1999). The use of cryptocurrencies by governments, in particular socialist governments, is a new occurrence and merits much attention for the future of public and monetary policy in those countries.

Petr Kuznetsov, Yvonne-Anne Pignolet, Pavel Ponomarev, Andrei Tonkikh

Most modern asset transfer systems use consensus to maintain a totally ordered chain of transactions. It was recently shown that consensus is not always necessary for implementing asset transfer. More efficient, asynchronous solutions can be built using reliable broadcast instead of consensus. This approach has been originally used in the closed (permissioned) setting. In this paper, we extend it to the open (permissionless) environment. We present {Pastro}, a permissionless and asynchronous asset-transfer implementation, in which quorum systems, traditionally used in reliable broadcast, are replaced with a weighted Proof-of-Stake mechanism. {Pastro} tolerates a dynamic adversary that is able to adaptively corrupt participants based on the assets owned by them.

Zhixiu Yu

This paper uses a search-theoretic model to study conditions under which cryptocurrency is valued and under which it coexists with fiat money. In my model, a cryptocurrency economy is one in which private agents’ decisions determine the stock of money and in which the marginal cost of producing money is increasing in the existing nominal stock. I show that the inflation rate of cryptocurrency must be zero in a stationary monetary equilibrium. This result is in sharp contrast to models with fiat money in which the stock of money is exogenously given. In fiat money economies, the inflation rate is determined by the rate of growth of the money stock. My result is also in sharp contrast with other types of private money economies, in which the inflation rate must necessarily be different from zero. In such private money economies, the cost of producing additional money does not depend on the existing nominal stock. Moreover, I show that cryptocurrency and fiat money can circulate at the same time and that the rates of return on these two assets may not be the same. Competition with cryptocurrency restricts the government’s ability to over-issue fiat money and thereby might improve on pure fiat money equilibria without government commitment.

Kanis Saengchote

Bank runs are a natural phenomenon for financial institutions that issue fixed value liabilities (e.g. money) that are backed by assets with uncertain value. I analyze Iron Finance, a decentralized finance (DeFi) protocol that issues stablecoin (a token with fixed nominal exchange rate: IRON) liabilities in exchange for a basket of other tokens (including a token issued by the protocol itself: TITAN). A combination of mathematical algorithms and incentive to arbitrage is used to maintain the exchange rate peg, but a shock to the protocol sent it into a downward spiral – much like a bank run. The incentives built into the protocol to defend the peg exacerbated its unravelling, raising the challenge of how DeFi protocols can address this vulnerability while remaining decentralized.

Daniel Santos Kosinski, Valter Duarte Ferreira Filho

O bitcoin foi lançado em 2009 com a pretensão de ser moeda privada, não institucional e livre dos arbítrios governamentais. Não teve êxito como tal, mas mostrou-se um meio para transferir direitos fora da vigilância e do controle das autoridades nacionais e internacionais. Por isso, o governo da China, extremamente cioso da sua soberania monetária, o considerou uma ameaça à segurança financeira, reprimindo o seu uso. Apesar disso, identificou nas tecnologias do bitcoin uma oportunidade para criar uma moeda digital governamental. O resultado foi a instituição do “renmimbi digital”, com o qual pretende maior rapidez e eficácia na execução das políticas internas, controlar essa nova modalidade de transações comerciais e, se possível, erguer as bases de uma nova ordem financeira centrada na China.

Cristopher Morales Bonilla

In recent decades, the birth of crypto-currency has challenged the monopoly of paper money controlled by national central banks and their respective states. From a decentralized conception of the economy, digital currencies such as Bitcoin have tried to replace traditional money as a new and more democratic form of economic relationship. However, it is necessary to confront these new forms of economic exchange with Karl Marx's analyses in Das Kapital to see whether they really represent an effective alternative to capitalism or whether they fall into new forms of capitalist relations.

Abdurrahman Arum Rahman

Purpose The most prominent and persistent problems of our global monetary system are instability and imbalances. We propose an international monetary model to solve these problems while at the same time move the model closer to Maqāṣid Sharīʿah (objectives of Sharīʿah). We name this an organic global monetary model or abbreviated as OGM. OGM is an international monetary model directly built on the national monetary system of each member country so that the two can co-exist. Design/methodology/approach Model design, theory and literature. Findings The model can eliminate interest rates at the central bank level, create non-tradable international money, and make a more stable international monetary system. Originality/value Original.

Sebastian Ilie Dragoe, Camelia Oprean-Stan

Abstract Crypto currencies have sparked great interest lately not only among regular people, billionaires and Wall Street, but it also caught the attention of national and global financial regulators across the world. In this article, we try to answer the following questions: what is bitcoin? It is money, a mean of payment, a huge bubble or just a way to evade taxes, launder money and fund illegal trade? We will answer these questions by testing whether bitcoin is a bubble with the help of right-tailed ADF tests and analyzing if the price of bitcoin has experienced shocks. We identify bitcoin price shock when the price of bitcoin is above its Hodrick-Prescott trend plus one standard deviation. Also, we will analyze if bitcoin fulfils the roles of money and if itself or a stablecoin like Libra can attain an important place within the international monetary system. We will also research the potential risks associated with the adoption of Libra, especially in poorer countries. Despite Bitcoin and Libra’s weaknesses, an advantage is that they insist on the necessity of faster and cheaper cross-border funds transfers 24/7, 365 days a year.

David Sanz Bas

The emergence of cryptocurrencies has been one of the most notable monetary phenomenon of the last decade. Many academics and analysts have found a clear precedent to this event in Friedrich Hayek's latest monetary work, Denationalization of money. The aim of this article is to analyze what we can learn about cryptocurrencies by re-reading this book. As will be proven, Hayek would surely have rejected the idea that Bitcoin and cryptocurrencies with similar characteristics could be accepted as money in the market. Furthermore, this paper will prove that a very close connection between Stablecoins and private money exists, following the Austrian economist’s predictions in a context of monetary competition.

Ana Flávia Ribeiro de Mendonça

Com o surgimento das Criptomoedas os debates sobre sua regulamentação jurídica e sua confiabilidade vêm se destacando no âmbito jurídico. Este presente trabalho tem o objetivo de contribuir, sobre o que são Criptomoedas, como funcionam e a possibilidade ou impossibilidade de sua regulamentação. Com base em diversas obras de autores em várias áreas de conhecimento, explora-se a Criptomoeda em um âmbito mais geral, além do principal foco, que e a viabilidade de incidência desse ativo no imposto de renda. Ademais, a questão da natureza tributária da Criptomoeda. O desenvolvimento deste trabalho inicia conceituando com o contexto histórico da moeda, conceituando Criptomoedas assim como a mais conhecida delas, chamada Bitcoin e seus desdobramentos, com uma analise jurídica do tema, estudando a necessidade/possibilidade de sua regulamentação.

thiago augusto bueno, Júlio César de Aguiar

The purpouse of this paper is analyse if the called bitcoin can be defined as currency.Therefore,
\nfirst is analysed the bitcoin tecnology, specially its structuring from the encryption development
\nby blockchain. The main characteristics of this technological structure are studied, wich allowed
\nits fast diffusion, with the sufficient confidence and security in the transactions, at low cost,
\nwithout the intervention of third parties, be it the State or the banking system.Later, the study
\nturns to the concept of money, from the economic point of view, under the focus of the main
\ntheories developed. At this point, a special analysis is made from the studies of the Austrian
\nschool of economics, especially by Luwig von Mises and his regression theorem, developed to
\nexplain the origin of the currency. Once these parameters have been established, bitcoin attributes are analyzed, having this paper concluded that its volatility and lack of liquidity prevent,
\nfor the moment, its characterization as currency. It should be noted that this paper serves as a
\nstarting point for future work on the legal effects of bitcoin, in particular in criminal law. However, it is necessary to define the nature of bitcoin.

Sameti Morteza, Mohammad Djawadi, Emadzadeh Mostafa

Theories of money and credit can be divided into two general categories: commodity theory of money and credit theory of money. Both categories theoretically question the acceptance of cryptocurrencies as money. The present study aimed to provide a new interpretation of the Theory of Money and Credit in relation to both theories mentioned above. First, the functions of “public trust” was taken as a commodity, which is consistent with Karl Menger’s views and the subjective theory of value. Based on this approach, the definitions of the credit theory of money will be acceptable with a new interpretation. This new interpretation also involves an extension of Hayek's definition of money, which is consistent with Mises' definition of money. Then, the concept of intertemporal preferences, with an emphasis on the barter root of money based on Mises’ regression theorem, was used to show that cryptocurrencies can be accepted as money as far as they serve as private currency and suit the computability of dynamics of “Underlying Economic Realities” with intertemporal preferences. Therefore, the main criterion for defining money is how it affects intertemporal preferences

Marcel Gehrung

No abstract is available for this record.