Cryptocurrency: An economic review of its current and potential benefits
Authors
Kristensen, Simon ; Jakobsen, Jesper Haar
Term
4. term
Education
Publication year
2018
Submitted on
2018-05-30
Pages
57
Abstract
Denne opgave undersøger, hvad kryptovalutaer er, og hvilke fordele de kan give investorer og forbrugere. For at vurdere, hvilken type aktiv de er, og om de kan fungere som “penge”, gennemgås grundlæggende pengeteori. Opgaven finder, at kryptovalutaer har flere egenskaber, der minder om penge, men mangler prisstabilitet, som er afgørende. Den store prisuro tilskrives deres nuværende spekulative og relativt nye karakter. En analyse af aktivklasser viser, at kryptovalutaer ikke passer ind i klassiske kategorier. Kombinationen af høj risiko, mulighed for høje afkast og begrænset sammenhæng med andre aktiver gør dem relevante i porteføljer, der accepterer større risiko. Opgaven undersøger derefter en mulig vej til prisstabilitet foreslået af Ametrano, inspireret af Hayeks idé om afnationalisering af penge: en rebaseringsmekanisme, hvor beholdninger i ens tegnebog automatisk justeres for at holde købekraften konstant. Afslutningsvis diskuteres, med udgangspunkt i en ramme for kritiske vendepunkter (perioder hvor regler og institutioner kan ændres), hvad der skal til for bredere udbredelse, og hvordan forbrugere kan drage nytte. Ud over de klassiske tre funktioner (betalingsmiddel, værdilager, regneenhed) vurderes lavere transaktionsomkostninger, beskyttelse mod kreditkortsvindel og monetær retfærdighed. Konklusionen er, at en fremtidig adoption kan gavne forbrugere på flere niveauer.
This thesis examines what cryptocurrencies are and what benefits they may offer investors and consumers. To assess what kind of asset they are, and whether they can function as “money,” it reviews basic monetary theory. The study finds that cryptocurrencies share several money-like traits but lack price stability, which is essential. Their price volatility is linked to their current speculative and relatively new nature. An asset-class analysis suggests they do not fit traditional categories. The combination of high risk, potential for high returns, and limited correlation with other assets makes them candidates for portfolios that accept greater risk. The thesis then explores a proposed path to price stability by Ametrano, inspired by Hayek’s denationalisation of money: a rebasing mechanism that automatically adjusts wallet balances to keep purchasing power constant. Finally, using a critical juncture perspective (turning points when rules and institutions can change), it discusses what broader adoption might require and how consumers could benefit. Beyond the classic three functions of money (medium of exchange, store of value, unit of account), it considers lower transaction costs, protection against credit card fraud, and monetary fairness. The conclusion is that eventual adoption could benefit consumers at different levels.
[This abstract was generated with the help of AI]
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