THE POLITICAL ECONOMY OF BITCOIN.

The recent proliferation of bitcoin has been a boon for users but might pose problems for governments. Indeed, some governments have already taken steps to ban or discourage the use of bitcoin. In a model with endogenous matching and random consumption preferences, we find multiple monetary equilibr...

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Publicado en:Economic Inquiry Vol. 54; no. 2; pp. 925 - 940
Autores principales: Hendrickson, Joshua R., Hogan, Thomas L., Luther, William J.
Formato: Artículo
Publicado: Wiley-Blackwell Apr2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: THE POLITICAL ECONOMY OF BITCOIN.
      aug:
        au:
          Hendrickson, Joshua R.
          Hogan, Thomas L.
          Luther, William J.
        affil:
          Department of Economics, University of Mississippi, University MS, 38677
          Johnson Center for Political Economy, Troy University, Troy AL, 36082
          Department of Economics, Kenyon College, Gambier OH, 43022
      su:
        Baidu Inc.
        Economic models
        Economics
        Government policy
        Bitcoin
        Digital currency laws
        Commodity futures
        Value-added tax
      sug:
        subj:
          Economic models
          Economics
          Government policy
          Baidu Inc.
          Commodity Contracts Dealing
          Commodity Contracts Brokerage
          Bitcoin
          Digital currency laws
          Commodity futures
          Value-added tax
      ab: The recent proliferation of bitcoin has been a boon for users but might pose problems for governments. Indeed, some governments have already taken steps to ban or discourage the use of bitcoin. In a model with endogenous matching and random consumption preferences, we find multiple monetary equilibria including one in which bitcoin coexists with official currency. We then identify the conditions under which government transactions policy might deter the use of bitcoin. We show that such a policy becomes more difficult if some users strictly prefer bitcoin because they can avoid other users holding the official currency in the matching process. ( JEL C78, E41, E42, E50)
      pubtype: Academic Journal
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    language: English
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