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Board Economics
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THE IMPLICATIONS OF THE MONETARY BASE OF BITCOIN ON ALTERNATIVE CRYPTOCURRENCIES
by
vandinn
on 01/09/2014, 22:29:29 UTC
Hi guys,

I wrote a Bachelor's thesis on THE IMPLICATIONS OF THE PREDETERMINED FINITE MONETARY BASE OF BITCOIN ON ALTERNATIVE CRYPTOGRAPHIC CURRENCIES.

Here's the abstract:

The cryptographic currency market has developed considerably since Bitcoin’s inception in 2009, and now has the ability to affect real-world economies. Some economists believe that certain forces (e.g., network effects, switching costs, government restrictions) prevent nongovernment monetary systems to occur. However, the recent growth of cryptocurrencies reveals that they have the potential to challenge the status quo of government-issued money systems. This study examines the forces that could potentially lead to the establishment of a money market leader, and then uses the findings to assess the impact of Bitcoin’s monetary base on Bitcoin itself, as well as on alternative cryptographic currencies. Results reveal that Bitcoin’s economic parameters were useful in the initial adoption of the currency; however, these parameters limit the cryptocurrency to work as an alternative to fiat money.


And here is the rest for anybody who wants to read the conclusion too: https://docs.google.com/file/d/0B6IyNaO3yNICYkFDckJaTTBXY1k/edit


Constructive feedback is welcome!


Martin