No full-text available
To read the full-text of this research,
you can request a copy directly from the author.
The Bitcoin ecosystem
Abstract
Speculating on how the Bitcoin economy might evolve.
... Recent research [10] has found that, theoretically, the platform is free and available to anyone who has access to a computer and internet connection. The platform also represents yet another potentially disruptive internet technology, leading to the fundamental question of whether it is truly free and easily available to use. ...
... An ecosystem is defined as a network of entities or stakeholders that are gathered or interacting around a single platform, called Software ecosystems [10,18,19]. A cryprotocurrency platform ecosystem is a technology such as Windows, iOS, or Android ecosystem, which is in its early stage that brings multiple parties together for a common purpose to perform financial transactions over the Internet. ...
... Literature that focused on examining the cryptocurrency ecosystem are merely simple introductory to cryptocurrency. For example, papers by [10,19,37,38] provide an insight into the cryptocurrency ecosystem perspective. It is also found that many of these papers lack the step-by-step procedures of conducting a research. ...
... Bitcoin (BTC) is a digital currency designed to operate in a distributed system without any central authority, based on a cryptographic protocol that does not require a trusted third party [8]. Introduced in a 2008 paper written under the pseudonym of Satoshi Nakamoto [9], Bitcoin serves as a technology to transfer money quickly for negligible fees [10]. ...
... Since then, the use of Bitcoin has widely expanded beyond criminal activities: at the time of writing, Bitcoin is accepted by many legal merchants and charities [13], including large businesses like Dell [14]. Bitcoin-accepting businesses, exchange markets and wallet services compose the Bitcoin ecosystem [8], where different kinds of agents interact, trade and communicate through digital channels. The increasing adoption of Bitcoin and its online nature allow us to simultaneously monitor its social and economic aspects. ...
... It is also difficult to estimate the scalability of automatic trading strategies, as financial markets are complex adaptive systems that react to trades of large volume. Furthermore, systemic risk emerges from algorithmic trading, creating flash crashes owing to algorithmic resonance [8]. In addition, structural changes and additional risks in borrowing and lending Bitcoin for shorting can emerge when exchange markets close or governments regulate Bitcoin, changing the rules of the game in a way such that our trading strategies might not work anymore. ...
The availability of data on digital traces is growing to unprecedented sizes,
but inferring actionable knowledge from large-scale data is far from being
trivial. This is especially important for computational finance, where digital
traces of human behavior offer a great potential to drive trading strategies.
We contribute to this by providing a consistent approach that integrates
various datasources in the design of algorithmic traders. This allows us to
derive insights into the principles behind the profitability of our trading
strategies. We illustrate our approach through the analysis of Bitcoin, a
cryptocurrency known for its large price fluctuations. In our analysis, we
include economic signals of volume and price of exchange for USD, adoption of
the Bitcoin technology, and transaction volume of Bitcoin. We add social
signals related to information search, word of mouth volume, emotional valence,
and opinion polarization as expressed in tweets related to Bitcoin for more
than 3 years. Our analysis reveals that increases in opinion polarization and
exchange volume precede rising Bitcoin prices, and that emotional valence
precedes opinion polarization and rising exchange volumes. We apply these
insights to design algorithmic trading strategies for Bitcoin, reaching profits
of more than 200% in less than a year. We verify this high profitability with
robust statistical methods that take into account risk and trading costs,
confirming the long-standing hypothesis that trading based social media
sentiment can yield positive returns on investment.
... For example, the role of trust has been emphasized as critically important for business alliances before establishing shared process standards (Krishnan et al. 2006, Venkatesh andBala 2012). Given that blockchain technology is frequently argued to dramatically reduce the need for trust in business partners , Cusumano 2014, Subramaniam 2018, research may need to evaluate prior assertions and investigate if other drivers than trust become indeed more important when blockchains are involved in adopting and managing interorganizational business process standards. ...
... Contemporary public blockchain systems, like Bitcoin or Ethereum, were recognized early as platforms that critically depend on the size and quality of their ecosystems of developers, complementary service providers, users, and validating actors in the network (Cusumano 2014). At the same time, however, there are also characteristic differences between blockchain platforms and traditional platforms (Andersen and Ingram Bogusz 2019, Risius and Spohrer 2017). ...
As blockchain technology is maturing to be confidently used in practice, its applications are becoming evident and, correspondingly, more blockchain research is being published, also extending to more domains than before. To date, scientific research in the field has predominantly focused on subject areas such as finance, computer science, and engineering, while the area of service management has largely neglected this topic. Therefore, we invited a group of renowned scholars from different academic fields to share their views on emerging topics regarding blockchain in service management and service research. Their individual commentaries and conceptual contributions refer to different theoretical and domain perspectives, including managerial implications for service companies as well as forward-looking suggestions for further research.
... The future of these currencies may depend on the extent to which national governments embrace blockchain-based currencies as part of their national and global financial systems; yet a deciding question appears to be whether people around the world are willing to use these currencies. The answer to this question has far-reaching implications for the future of global financial systems, especially because anyone with an Internet connection can acquire these currencies and spend them with vendors that accept them (Cusumano, 2014). ...
Some have called bitcoin a real bubble, while, according to others, it is the most radical invention of the twenty-first century. Nevertheless, there is a consensus regarding the disruptive potential of blockchain technology, which is the basis of bitcoin and other similar cryptocurrencies. As the interest in these digital currencies is growing, many vendors around the globe now accept payments in blockchain-based currencies. However, not much is known about how individuals around the world would react to using blockchain-based currencies as spending currencies. Given the global reach of these currencies, in this study, we explore the role of national cultural values in influencing individuals’ willingness to use blockchain-based currencies. To do so, we collected survey data from the U.S. and India. We found that national cultural values (collectivism, power distance, masculinism, uncertainty avoidance, and long-term orientation) significantly affect blockchain-based currency usage.
... Bergstra and Weijland (2014) have tried to classify Bitcoin from traditional currency, informational currency, or money-like commodity and concluded it as a money-like commodity. Cusumano (2014) has intuitively analysed the Bitcoin ecosystem and found that it is less-alike like a currency but more as a computer-generated commodity. Cheah and Fry (2015) have studied Bitcoin in a speculative-bubble aspect and also investigated whether there are trends of Google search or not for additional perception, and they come to the conclusion that it is much prone to speculative-bubbles and has no fundamental value. ...
In recent years, cryptocurrency or virtual currency is becoming an essential medium of exchange in consumer and domestic trading. Nevertheless, the trading values of cryptocurrency compared to real money are very uncertain and can change dramatically. This article is aimed to assess the uncertainty or volatility of cryptocurrencies, mostly on Bitcoin. In the digital currencies market, Bitcoin is a widely accepted currency. Other digital currencies of the market may influence Bitcoin. For example, Ethereum, Litecoin, Zcash, Monero, Dash and Ripple have a positive impact on Bitcoin. Previous research only focuses on Bitcoin and other markets such as stock markets, energy markets, and exchange rates. However, here we focus on interlinkages and volatility dynamics within cryptocurrency markets by applying some econometrics models. In this article, we have shown that the relationship between Bitcoin and other currencies can be modelled in the ARCH, GARCH, VAR and MGARCH framework. Forecast values of the GARCH (3,3) model are given very close to the original data. VAR stability result shows that the model is stable. Using the CCC, VCC, and DCC of the MGARCH model on daily returns from 1st January 2017 to 15th March 2019, we found significant volatility and strong correlations between the variables.
... The growth of virtual currencies (Baronchelli 2018) has fueled interest from the scientific community (Barrdear and Kumhof 2016;Dwyer 2015;Bohme et al. 2015;Casey and Vigna 2015;Cusumano 2014;Krafft et al. 2018;Rogojanu and Badeaetal 2014;White 2015;Baek and Elbeck 2015;Bech and Garratt 2017;Blau 2017;Dow 2019;Fama et al. 2019;Fantacci 2019;Malherbe et al. 2019). Cryptocurrencies have faced periodic rises and sudden dips in specific time periods, and therefore the cryptocurrency trading community has a need for a standardized method to accurately predict the fluctuating price trends. ...
In today’s era of big data, deep learning and artificial intelligence have formed the backbone for cryptocurrency portfolio optimization. Researchers have investigated various state of the art machine learning models to predict Bitcoin price and volatility. Machine learning models like recurrent neural network (RNN) and long short-term memory (LSTM) have been shown to perform better than traditional time series models in cryptocurrency price prediction. However, very few studies have applied sequence models with robust feature engineering to predict future pricing. In this study, we investigate a framework with a set of advanced machine learning forecasting methods with a fixed set of exogenous and endogenous factors to predict daily Bitcoin prices. We study and compare different approaches using the root mean squared error (RMSE). Experimental results show that the gated recurring unit (GRU) model with recurrent dropout performs better than popular existing models. We also show that simple trading strategies, when implemented with our proposed GRU model and with proper learning, can lead to financial gain.
... The growth of virtual currencies (Baronchelli 2018) has fueled interest from the scientific community (Barrdear 2016, Dwyer 2015, Bohme 2015, Casey 2015, Cusumano 2014, Krafft 2018, Rogojanu 2014, White 2015. Cryptocurrencies have faced periodic rise and sudden dips in specific time periods, and therefore the cryptocurrency trading community has a need for a standardized method to accurately predict the fluctuating price trends. ...
In today's era of big data, deep learning and artificial intelligence have formed the backbone for cryptocurrency portfolio optimization. Researchers have investigated various state of the art machine learning models to predict Bitcoin price and volatility. Machine learning models like recurrent neural network (RNN) and long short-term memory (LSTM) have been shown to perform better than traditional time series models in cryptocurrency price prediction. However, very few studies have applied sequence models with robust feature engineering to predict future pricing. in this study, we investigate a framework with a set of advanced machine learning methods with a fixed set of exogenous and endogenous factors to predict daily Bitcoin prices. We study and compare different approaches using the root mean squared error (RMSE). Experimental results show that gated recurring unit (GRU) model with recurrent dropout performs better better than popular existing models. We also show that simple trading strategies, when implemented with our proposed GRU model and with proper learning, can lead to financial gain.
... Durch die im Zuge dessen steigende Anzahl an beteiligten Akteuren werden Wirtschaftsökosysteme zunehmend komplexer. So ist zum Beispiel die Situation des Finanzund Bankensektors durch die Etablierung von Anbietern für Mobile-Cash-Anwendungen und Kryptowährungen derzeit einem starken Wandel unterworfen (Cusumano 2014). Diese neuen Akteure haben den traditionellen Zahlungsprozess und somit auch die Beziehung zwischen Kreditinstituten und ihren Kunden grundlegend verändert. ...
Inkubatoren erlangen zunehmend an Bedeutung und spielen eine wichtige Rolle für die Förderung von Start-ups. Sie fungieren dabei als Dienstleistungszentren, die Services für die zu betreuenden Unternehmen erbringen. Trotz des zunehmenden Serviceangebots von Inkubatoren fällt auf, dass die Literatur bisher nicht auf Online-Services von Inkubatoren eingeht. Ziel dieses Beitrags ist es, das digitale Serviceangebot von Inkubatoren zu erkunden. Hierzu wird eine Studie mit deutschen Inkubatoren durchgeführt mit dem Ziel, den aktuellen Stand von Online-Services bei deutschen Inkubatoren aufzuzeigen. Darüber hinaus dient diese Studie dazu, das Potenzial crowdbasierter Services zu ermitteln und zu zeigen, wie diese einen Mehrwert für Inkubatoren stiften können. Basierend auf den Ergebnissen der Studie stellen wir das CrowdServ-Konzept vor, mit dem Ziel, Inkubatoren eine Hilfestellung für die Implementierung crowdbasierter Services zu geben. Dieses Konzept nutzt die Vorteile digitaler Infrastrukturen sowie die kollektive Intelligenz einer Vielzahl von Experten, Investoren und Kunden, um Inkubator-Dienstleistungen digital abzubilden.
... Even with this fee, fraudulent transactions are not always eliminated. In a decentralised online marketplace, users transact with each other securely and directly, and the network of nodes validates and records each transaction [23]. Therefore, blockchain can also enable buyers and sellers to transact directly and without manipulation by intermediaries. ...
... Accordingly, various academic publications are already available. In addition to numerous highly rated articles (Cusumano, 2014;van Alstyne, 2014), there are some basic publications (Giese, 2017;Kerscher, 2013;Miller, 2015) dealing with various questions concerning blockchain in the financial world. ...
The blockchain technology has become well known in the finance sector, for instance as the basis for the cryptocurrency Bitcoin. To go beyond its mere use as cryptocurrency, academia and practice expect large potentials by its application in further, particularly industrial, sectors. One reason is that, being a decentralized and transparent electronic register managed remotely by subscribers on a distributed network, blockchain creates trust in online transactions due to its reliability and safety. These are indispensable functionalities for business process digitization. Despite blockchain’s expected far-reaching economic potential, and its relevance for academia and corporate practice alike, possible industrial application fields are still relatively unknown. Hence, our research question is: Which are the potentials of the blockchain technology in an industrial context? Our study’s main goal is to analyze this technology’s industrial applications and elaborate on its future potentials.
To address the research question at hand, we employ a systematic literature review. By doing so we identify, evaluate, synthesize, and summarize all relevant scientific publications, which allows us to detect the current state of research concerning industrial applications and potentials of the blockchain technology. To ensure that the results are reliable and comprehensible, our literature review is based on previously established, unambiguous, and repeatable steps: During its course, we search the databases ScienceDirect, Ebsco, Google Scholar, and ABI/Inform for scientific publications from 2008 until today. These databases are well established in management research and constitute a source of high-quality information. Applying several criteria, such as quality, rigor, and scope, we select 59 relevant papers, which we examine, synthesize, and eventually discuss in detail.
By displaying the current state of research on blockchain’s industrial application fields, we develop six dominant research categories: Motivations for using a blockchain, opportunities for IIoT applications, obstacles to implementation, approaches to implementing a blockchain, impact of blockchain technology on the business model, and examples of blockchain applications. We elaborate further on two case examples to illustrate how industrial companies implement blockchain effectively. By doing so, we provide a broad overview on blockchain’s industrial applications and give detailed insights into the potentials this technology comprises within this context.
Our study provides both researchers and practitioners with a comprehensive understanding of blockchain’s implications for industrial value creation. With this, we enable managers to draw targeted conclusions on the value of applying the technology and to take adequate decisions regarding its effective management. As our literature review is among the first to synthesize recent research findings on the industrial potentials of blockchain, we contribute to the academic debate. By identifying further research fields and in particular by providing future research implications, we lay the fundament for further studies.
... The emergence of a self-organised market of virtual currencies and/or assets whose value is generated primarily by social consensus [13] has naturally attracted interest from the scientific community [8,[14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30]. Recent results have shown that the long-term properties of the cryptocurrency marked have remained stable between 2013 and 2017 and are compatible with a scenario in which investors simply sample the market and allocate their money according to the cryptocurrency's market shares [1]. ...
Machine learning and AI-assisted trading have attracted growing interest for the past few years. Here, we use this approach to test the hypothesis that the inefficiency of the cryptocurrency market can be exploited to generate abnormal profits. We analyse daily data for 1,681 cryptocurrencies for the period between Nov. 2015 and Apr. 2018. We show that simple trading strategies assisted by state-of-the-art machine learning algorithms outperform standard benchmarks. Our results show that nontrivial, but ultimately simple, algorithmic mechanisms can help anticipate the short-term evolution of the cryptocurrency market.
... Both of these discussion patterns in the crypto community are possible [11]. There have certainly been some examples of bubbles bursting (e.g., the Auroracoin crash in 2014), but some have even argued that the whole crypto-ecosystem is a bubble, i.e. primarily hype-based, since its fundamental value is zero [7]. ...
Participants in cryptocurrency markets are in constant communication with each other about the latest coins and news releases. Do these conversations build hype through the contagiousness of excitement, help the community process information, or play some other role? Using a novel dataset from a major cryptocurrency forum, we conduct an exploratory study of the characteristics of online discussion around cryptocurrencies. Through a regression analysis, we find that coins with more information available and higher levels of technical innovation are associated with higher quality discussion. People who talk about "serious" coins tend to participate in discussion displaying signatures of collective intelligence and information processing, while people who talk about "less serious" coins tend to display signatures of hype and naïvety. Interviews with experienced forum members also confirm these quantitative findings. These results highlight the varied roles of discussion in the cryptocurrency ecosystem and suggest that discussion of serious coins may be oriented towards earnest, perhaps more accurate, attempts at discovering which coins are likely to succeed.
... Although Bitcoin emerged at the beginning of 2009, it had a stable value around a bunch of cents until the end of 2010. Until that date, Bitcoin dominating the market for a long time cryptocurrencies had formed a new economic sub-system with mining pools in order to stabilize the miners' income, e-wallet services, financial service providers, payment processors and exchange markets (Cusumano, 2014). ...
Bitcoin is the first that comes to mind while mentioning cryptocurrencies. Bitcoin has emerged in 2008 and has always kept a debate updated on Bitcoin and its subsequent crypto currencies for the last ten years. The main point of this debate is whether the crypto money is a commodity or a currency. The general acceptance is that these assets are currencies and the naming "crypto currency" is the result of this acceptance. However, some researchers continue to evaluate Bitcoin and its derivatives as commodities (i.e. gold, iron, cotton, etc.). The purpose of this work is to give a perspective on the controversy about cryptocurrencies really possess money features or commodity feature as claimed by focusing on cryptocurrencies historical value changes and comparing these data with real money and commodities. In the study, the price changes of cryptocurrencies (Bitcoin, Ethereum, Litecoin, Ripple), real money (US Dollar, Euro and Chinese Yuan) and commodities (gold, iron and cotton) in terms of Turkish Liras will be evaluated and covariance and correlation analysis were made on based on daily closing values.
ÖZ
Kripto para denilince ilk akla gelen Bitcoin olmaktadır. Bitcoin, 2008 yılında ortaya çıkmıştır ve geride kalan on yıllık dönemde Bitcoin ve onu izleyen kripto paralara dair bir tartışma güncelliğini hep korumuştur. Bu tartışmasının esası, kripto paraların bir emtia mı yoksa gerçekten bir para mı olduğu yönündedir. Genel kabul bu varlıkların para olduğu yönündedir, zira kripto paralar şeklinde isimlendirme de bu kabulün sonucudur. Buna karşın, bazı araştırmacılar Bitcoin ve türevlerini emtia (örneğin; altın, demir, pamuk vb.) gibi değerlendirmeye devam etmektedir. Bu çalışmanın amacı da kripto paraların gerçekten bir para mı yoksa iddia olunduğu gibi emtia özelliklerini mi barındırdığı yönündeki bu tartışmaya kripto paraların değer değişimlerinin reel paraların ve emtiaların değerindeki değişimler ile birlikte gösterdiği değişim eğilimlerinden hareketle bir bakış açısı kazandırmaktır. Çalışmada 01.01.2015-31.12.2017 arasında kalan 3 yıllık zaman zarfında kripto para birimlerinden olan Bitcoin, Ethereum, Litecoin ve Ripple'ın; reel paralar olarak Amerikan Doları, Euro ve YUAN ile emtia olarak altın, demir ve pamuğun Türk Lirası cinsinden fiyat (değer) değişimleri tahlil edilerek, her birinin günlük kapanış değerleri üzerinden korelasyon ve kovaryans analizi yapılmıştır.
... The emergence of a self-organised market of virtual currencies and/or assets whose value is generated primarily by social consensus [13] has naturally attracted interest from the scientific community [8,[14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30]. ...
Machine learning and AI-assisted trading have attracted growing interest for the past few years. Here, we use this approach to test the hypothesis that the inefficiency of the cryptocurrency market can be exploited to generate abnormal profits. We analyse daily data for 1, 681 cryptocurrencies for the period between Nov. 2015 and Apr. 2018. We show that simple trading strategies assisted by state-of-the-art machine learning algorithms outperform standard benchmarks. Our results show that non-trivial, but ultimately simple, algorithmic mechanisms can help anticipate the short-term evolution of the cryptocurrency market.
... Bergstra and Weijland (2014) compared several other candidate type for a preferred base type for Bitcoin and classified Bitcoin as a system of type money-like informational commodity (MLIC). Cusumano (2014) currently see Bitcoins less like a currency and more like a computer-generated commodity. Wu and Pandey (2014) examined Bitcoin's role as a currency and it's efficiency as a investment asset. ...
Background
Bitcoin, the most innovate digital currency as of now, created since 2008, even through experienced its ups and downs, still keeps drawing attentions to all parts of society. It relies on peer-to-peer network, achieved decentralization, anonymous and transparent. As the most representative digital currency, people curious to study how Bitcoin’ price changes in the past. Methods
In this paper, we use monthly data from 2011 to 2016 to build a VEC model to exam how economic factors such as Custom price index, US dollar index, Dow jones industry average, Federal Funds Rate and gold price influence Bitcoin price. ResultFrom empirical analysis we find that all these variables do have a long-term influence. US dollar index is the biggest influence on Bitcoin price while gold price influence the least. Conclusion
From our result, we conclude that for now Bitcoin can be treated as a speculative asset, however, it is far from being a proper credit currency.
... Although Morisse (2015) finds that most research has focused on the "ecosystem layer", the majority of these papers consist of basic introductions the technical, economic, legal and social aspects of Bitcoin (Grinberg, 2012;Trautman, 2014), its main actors (Cusumano, 2014) and the regulatory and legal status (Kaplanov, 2012;Brito & Castillo, 2013, De Filippi, 2014. ...
... Although Morisse (2015) finds that most research has focused on the "ecosystem layer", the majority of these papers consist of basic introductions the technical, economic, legal and social aspects of Bitcoin (Grinberg, 2012;Trautman, 2014), its main actors (Cusumano, 2014) and the regulatory and legal status (Kaplanov, 2012;Brito & Castillo, 2013, De Filippi, 2014. ...
Bitcoin, a decentralised cryptocurrency system conceived by a mysterious person or group of people using the pseudonym “Satoshi Nakamoto”, promises to revolutionise the way that we think about money and the transfer of value in general. After a quiet launch in 2009, it has evolved several years later into a multi-billion dollar industry and has inspired the creation of hundreds of similar cryptocurrency systems. However, little research has been undertaken so far to study the vibrant business ecosystems that form around these decentralised networks. The aim of this project is thus to explore the emergence of the Bitcoin business ecosystem and its evolving structure using a data-driven approach, and identify the factors that drive this evolution. For this purpose, a theoretical market segment framework is developed and applied to a longitudinal dataset of 514 companies and projects that was specifically built for this project. Using a visualisation approach, the business ecosystem is mapped in terms of the affiliations of entities to market segments over a time window from 2010-2015 in order to visually analyse how the structure evolves. The key findings and observations are presented and several factors influencing the evolution of the business ecosystem are identified. Finally, the results are discussed in relation to the existing theory. The project provides the first comprehensive and data-driven analysis of the Bitcoin business ecosystem and offers interesting insights into its structure and evolution. Moreover, it contributes to the understanding of the factors that drive this evolution and provides a unique dataset that can be used for further research.
... Se afirma que en principio el suministro de bitcoins podría ser lo suficientemente sólido para funcionar como un sustituto de la moneda, pero aún no está listo para desempeñar este papel. Asimismo, asegura que su tecnología es más como Windows, iOS o Android en sus primeras etapas, por lo que necesita un ecosistema de productos y servicios complementarios para hacer esta tecnología fácil de utilizar [145]. Hasta que la moneda no se estabilice y existan métodos fiables para el seguimiento de su uso, Bitcoin podría presentar dificultades reales de contabilidad y preservación de capital en las industrias. ...
p>Bitcoin es un sistema de dinero digital descentralizado que está amenazando el uso del dinero convencional. Este sistema ha aumentado su popularidad atrayendo la atención de los medios, la comunidad y los organismos de control, dado su anonimato y estructura, donde los usuarios son quienes generan la moneda y verifican que las transacciones sean efectuadas por medio de un proceso criptográfico. El artículo evidencia el estado de arte de las diferentes formas de dinero que ha utilizado el ser humano, desde la aparición del trueque a partir del 9000 a.C, hasta llegar al Bitcoin como forma de dinero digital en la última década. Para el desarrollo de la investigación se hizo una búsqueda con las palabras: dinero (money), historia del dinero (history of money) y Bitcoin, principalmente en las bases de datos de las revistas: IEEE, ScienceDirect, Jstor-Journal Storage y Business Source Complete, de la Universidad Distrital Francisco José de Caldas y de la Universidad Nacional de Colombia (SINAB), donde se encontraron 355 documentos pero se seleccionaron 162 que favorecieron la revisión. Finalmente se concluye que el Bitcoin es considerado como una moneda experimental por lo tanto carece de reconocimiento dentro de la economía global, pero a futuro puede ser una alternativa a los costosos sistemas tradicionales, logrando aumentar el acceso de los negocios en la red.
Bitcoin transversal alternative monetary exchange in the digital economy
Abstract
Bitcoin is a decentralized system of digital money that is threatening the use of conventional money. This system has increased in popularity attracting media attention, community and control bodies, given their anonymity and structure where users are who generate the currency and verify that transactions are carried out by means of a cryptographic process. The article demonstrates the state of art of different forms of money used humans, since the emergence of barter from 9000 BC until the Bitcoin as a form of digital money in the last decade. For the development of research, it was searched with the words: money (money), history of money (history of money) and Bitcoin, mainly in databases of journals: IEEE, ScienceDirect, JSTOR-Journal and Storage Business Source Complete the District University Francisco Jose de Caldas and the National University of Colombia (SINAB) where 355 documents were found but 162 of them were selected because favored the review. Finally we conclude that Bitcoin is considered an experimental currency therefore lacks recognition within the global economy, but the future can be an alternative to expensive traditional systems, achieving increasing access network business
Key words: Bitcoin, criptocurrency, digital money, history of money, minning Bitcoin, money.</p
... The Economics of Being Online #chi4good, CHI 2016, San Jose, CA, USA order-book models [21]. It remains unclear if consumers will treat Bitcoin as a currency replacement or as a commodity for speculation in the long-term [19]. Other work has analyzed: Bitcoin's money flow and wealth accumulation [34], using Bitcoin as a measurement of socio-economic signals [26], Bitcoin's economic limitations as a decentralized currency [27,23], and predicting the end-of-day closeprice with social media chatter [31]. ...
Digital currencies represent a new method for exchange -- a payment method with no physical form, made real by the Internet. This new type of currency was created to ease online transactions and to provide greater convenience in making payments. However, a critical component of a monetary system is the people who use it. Acknowledging this, we present results of our interview study (N=20) with two groups of participants (users and non-users) about how they perceive the most popular digital currency, Bitcoin. Our results reveal: non-users mistakenly believe they are incapable of using Bitcoin, users are not well-versed in how the protocol functions, they have misconceptions about the privacy of transactions, and that Bitcoin satisfies properties of ideal payment systems as defined by our participants. Our results illustrate Bitcoin's tradeoffs, its uses, and barriers to entry.
... Another, potentially far more disruptive innovation in this field applies to crypto- currencies [9]. Advocates of these new means of payment claim various advantages, like a fully decentralized, peer-to-peer transaction system, elimination of chargeback risks, lower associated transaction costs, increased level of security, greater ease of use, and full support for mobile devices [10,11]. ...
In this paper, we examine cryptocurrencies as a potentially disruptive sort of payment method. Due to its relative importance, we focus in particular on Bitcoin. Through an inductive, exploratory interview approach with 13 individuals in three distinct groups, the determinants usability, usefulness, and subjective norm that could make Bitcoin a game-changer are explored. The results reveal that most stakeholders consider perceived ease of use still rather low, with perceived usefulness varying according to the user group. The notion of Bitcoin as having much future potential as a payment method is confirmed across all interviewees. Interestingly, the underlying concept of a blockchain is also seen as a potential revolutionary way to create a more just society based on open platforms and open data. However, the reasons of why Bitcoin is actually a disruption to existing solutions varies widely.
... For this reason, changes in the software have to be adopted with the consensus of almost all the users and developers (Bitcoin.org 2015;Cusumano 2014). ...
Virtual currencies have recently emerged at the intersection of Internet and finance, bringing unprecedented innovations in payment systems, money and finance. In particular, Bitcoin is examined as the first example of virtual currency, dating back to 2009. Ever since virtual currencies emerged, they received increased attention from public, private and societal regulators, especially in the field of finance. Since regulation of Bitcoin is still in its infancy, this project will rather aim to unpack the underlying rationalities of power. Employing the concept of governmentality, this thesis performs Critical Discourse Analysis on policy papers, statements and press releases from public, private and societal regulators of finance. Rationalities of power and regulation are unpacked along three categories: ideas over the object that has to be regulated; ideas over the objectives that regulation has to achieve; ideas over the technical tools to be employed to achieve said aims. The results envision a future in which regulation will be public, transnational and permissive. The attitude of regulators is aimed at co-opetition, understood as a mix of competition and co-optation of virtual currencies in the current paradigm of regulation of money and finance. The future scenario will be mostly decided by strategic employment of material and institutional power by public and private actors in order either to limit or to support the adoption and diffusion of virtual currencies. However, it seems unlikely that virtual currencies will simply vanish in the future.
... Bitcoin's market impact model appears to fit well with statistical latent order-book models [14]. It remains unclear if consumers will treat Bitcoin as a currency replacement or as a commodity for speculation in the long-term [13]. Other work has analyzed: Bitcoin's money flow and wealth accumulation [27], using Bitcoin as a measurement of socioeconomic signals [19], Bitcoin's economic limitations as a decentralized currency [20,16], and nowcasting the close-price with social media chatter [24]. ...
Digital currencies represent a new method for exchange and investment that
differs strongly from any other fiat money seen throughout history. A digital
currency makes it possible to perform all financial transactions without the
intervention of a third party to act as an arbiter of verification; payments
can be made between two people with degrees of anonymity, across continents, at
any denomination, and without any transaction fees going to a central
authority. The most successful example of this is Bitcoin, introduced in 2008,
which has experienced a recent boom of popularity, media attention, and
investment. With this surge of attention, we became interested in finding out
how people both inside and outside the Bitcoin community perceive Bitcoin --
what do they think of it, how do they feel, and how knowledgeable they are.
Towards this end, we conducted the first interview study (N = 20) with
participants to discuss Bitcoin and other related financial topics. Some of our
major findings include: not understanding how Bitcoin works is not a barrier
for entry, although non-user participants claim it would be for them and that
user participants are in a state of cognitive dissonance concerning the role of
governments in the system. Our findings, overall, contribute to knowledge
concerning Bitcoin and attitudes towards digital currencies in general.
The cryptocurrency market surpassed the barrier of \$100 billion market capitalization in June 2017, after months of steady growth. Despite its increasing relevance in the financial world, however, a comprehensive analysis of the whole system is still lacking, as most studies have focused exclusively on the behaviour of one (Bitcoin) or few cryptocurrencies. Here, we consider the history of the entire market and analyse the behaviour of 1,469 cryptocurrencies introduced between April 2013 and June 2017. We reveal that, while new cryptocurrencies appear and disappear continuously and their market capitalization is increasing (super-)exponentially, several statistical properties of the market have been stable for years. These include the number of active cryptocurrencies, the market share distribution and the turnover of cryptocurrencies. Adopting an ecological perspective, we show that the so-called neutral model of evolution is able to reproduce a number of key empirical observations, despite its simplicity and the assumption of no selective advantage of one cryptocurrency over another. Our results shed light on the properties of the cryptocurrency market and establish a first formal link between ecological modelling and the study of this growing system. We anticipate they will spark further research in this direction.
Dek
The looming battle over currencies and payment platforms.
Supply chain traceability refers to product tracking from the source to customers, demanding transparency, authenticity, and high efficiency. In recent years, blockchain has been widely adopted in supply chain traceability to provide transparency and authenticity, while the efficiency issue is understudied. In practice, as the numerous product records accumulate, the time-and storage-efficiencies will decrease remarkably. To the best of our knowledge, this paper is the first work studying the efficiency issue in blockchain-based supply chain traceability. Compared to the traditional method, which searches the records stored in a single chunk sequentially, we replicate the records in multiple chunks and employ parallel search to boost the time efficiency. However, allocating the record searching primitives to the chunks with maximized parallelization ratio is challenging. To this end, we model the records and chunks as a bipartite graph and solve the allocation problem using a maximum matching algorithm. The experimental results indicate that the time overhead can be reduced by up to
85.1
% with affordable storage overhead.
Supply chain traceability refers to product tracking from the source to customers, demanding transparency, authenticity, and high efficiency. In recent years, blockchain has been widely adopted in supply chain traceability to provide transparency and authenticity, while the efficiency issue is understudied. In practice, as the numerous product records accumulate, the time- and storage- efficiencies will decrease remarkably. To the best of our knowledge, this paper is the first work studying the efficiency issue in blockchain-based supply chain traceability. Compared to the traditional method, which searches the records stored in a single chunk sequentially, we replicate the records in multiple chunks and employ parallel search to boost the time efficiency. However, allocating the record searching primitives to the chunks with maximized parallelization ratio is challenging. To this end, we model the records and chunks as a bipartite graph and solve the allocation problem using a maximum matching algorithm. The experimental results indicate that the time overhead can be reduced by up to 85.1% with affordable storage overhead.
Precision, validity, reliability, timeliness, availability, and granularity are the desired characteristics for data and information systems. However due to the desired trait of data mutability, information systems have inherently lacked the ability to enforce data integrity without governance. A resolution to this challenge has emerged in the shape of blockchain architecture, which ensures immutability of stored information, whilst remaining in an online state. Blockchain technology achieves this through the serial attachment of set-sized parcels of data called blocks. Links (liken to a chain) between these blocks are implemented using a cryptographic seal created using mathematical functions on the data inside the blocks. Practical implementations of blockchain vary by different components, concepts, and terminologies. Researchers proposed various architectural models using different layers to implement blockchain technologies. In this paper, we investigated those layered architectures for different use cases. We identified essential layers and components for a generalised blockchain architecture. We present a novel three-tiered storage model for the purpose of logically defining and categorising blockchain as a storage technology. We envision that this generalised model will be used as a guide when referencing and building any blockchain storage solution.
Blockchain not only represents the latest innovation in Information and Communications Technology(ICT) but also lays the foundation stone for the development of numerous economic models which are characterized by decentralization, privacy, security and transparency. One of the pre-eminent products of the transparent digital database of transactions that is claimed to be inviolable is the cryptocurrency. The cryptocurrency is often christened as Bitcoin since it is the most convenient and easy to use out of all and has consequently gained enormous traction in contemporary economic and business models, radically transforming payment mechanisms for the better. Numerous studies in the past have been undertaken that aim at examining the underlying reason behind Bitcoin’s value over the years. The study involves usage of Econometric models to analyze how various variables at the macro and micro level affect the Bitcoin Price trend in the long and short term The objective of this research analysis is not only to aid investors in making prudent investment de-cisions in Bitcoin by closely monitoring the influential exogenous and endogenous variables but also to structurally understand the working relationship and economic consequences of these variables in the Cryptocurrency space. After checking for stationarity of the variables under study, ARDL mod-el was used followed by the Bounds F Test and UECM model (where required). It was found that the variables under study explained 99.32% variation in BTC market value in the long run, some of which, had a positive relationship while some had negative. Some were also found to be not significantly influencing its market value.
In this study, we investigate whether public awareness of positive or negative possible incidents pertaining to the bitcoin ecosystem are related to bitcoin price and we model bitcoin price volatility taking into consideration public awareness. We take a middle-of-the-road approach, by using a simpler – and thus less data demanding - proxy for public awareness compared to studies that have used complex models that include many parameters to capture the relationships and factors in the ecosystem, but at the same time, a richer approach compared to approaches that simply use the volume of searches for “bitcoin” and its “price” as a proxy in their models. Specifically, we use six different Google Trends queries as proxies in our models: three searches for positive incidents, and three for negative ones. We employ a dataset with monthly price data that covers the time period from September 1st 2011 to December 31st 2019 and we use GARCH and EGARCH models to test whether public awareness of positive or negative possible incidents pertaining to the bitcoin ecosystem is related to bitcoin price and to model price volatility. Results show that majority of our proxies of public awareness are significantly related to price. Moreover, our EGARCH model has detected an asymmetry pertaining to the price volatility’s reaction to price news, specifically an “anti-leverage effect”, that is, the price volatility is more sensitive to good financial news rather to bad news. In addition, we detected a significant effect of both old and novel news.
Although cryptocurrencies and blockchain technology can be considered new advances, they have started to be recognized widely, and this has been discussed and investigated in lots of research studies. In parallel, the primary purpose of this study is to investigate the development and evolution of cryptocurrencies and blockchain technology over the past years in the academic world. To this end, 334 scholarly journal articles are examined to: (1) conduct a comprehensive literature review in the field of cryptocurrencies and blockchain; (2) identify the possible trends and changes in this field over the ten years; (3) compare the publishing productivity of journals; and (4) guide future research in this field. The results highlight that the researchers mainly concentrate on legal and ethical issues of them; their benefits, challenges, and risks; their conceptualization, evolution, and future; the economic dimension of them; and financial and accounting related issues of them.
Die Digitalisierung hat neben den Veränderungen, die sie auf individueller und unternehmensinterner Ebene hervorruft, auch maßgebliche Auswirkungen auf die Marktebene. Dieser Buchbeitrag gibt eine thematische Kurzvorstellung der in Kap. 3 enthaltenen Einzelbeiträge und stellt deren Bezug zu verschiedenen Einflussfaktoren der Veränderungen, die die Digitalisierung auf Marktebene bewirkt, dar. Die thematisierten Einflussfaktoren sind das Auftreten neuer Technologien, neue Geschäftsmodelle sowie auch der Wandel von Kundenbedürfnissen und Kundenrollen. Darüber hinaus befassen sich die Beiträge auch mit der steigenden Anzahl an Wettbewerbern und den geänderten rechtlichen Rahmenbedingungen. Aus den Implikationen der Einzelbeiträge im Hinblick auf die digitalisierungsgetriebenen Veränderungen in Märkten leiten wir zudem weitere Forschungsbedarfe ab.
Purpose
With the continuing development of the financial technology revolution, a better understanding of bank deposits variability has become necessary for bank management and policymakers, especially central banks. This is because the novel innovations of cryptocurrencies operate beyond the realm of the banking system, which may impact the performance of banks and their deposits variability. This study aims to investigate the long- and short-run effects of cryptocurrencies’ market capitalization development on the banks’ deposit variability in the Gulf Cooperation Council (GCC) region.
Design/methodology/approach
In this study, the Johansen–Juselius (1990) cointegration test with vector error correction model was applied to examine the long-run relationships, while the Engle and Granger (1987) and the Granger (1969) causality tests were used to detect causal relationships in the short term.
Findings
The findings of Johansen–Juselius cointegration test indicate that the banks’ deposits variability in all six states of the Gulf region share negative long-run equilibrium association with the development of global cryptocurrencies market capitalization, but with different statistically significant levels. For the short-run analysis, the study found that the development of cryptocurrencies market capitalization has significant unidirectional causal effects on bank deposits variabilities in only four states, namely, UAE, Qatar, Kuwait and Bahrain. The findings of the study therefore suggest that to eradicate the effects of cryptocurrencies industry and its threats to the banking industry, banks in GCC region are encouraged to either consider cryptocurrencies as an alternative investment asset for their portfolio investment diversification strategies or adopt the blockchain technology in their operation system to facilitate their customers with low transaction cost, high level of security and ease of use and real-time settlement.
Research limitations/implications
The empirical findings of the study will provide valuable input for policymakers, especially central banks and bank managements, to evaluate the current situation and the threats of the cryptocurrencies market growth and its effect on the banking industry’s performance, future survival and their deposits variability for better regulation and policy planning and investment strategies.
Originality/value
This is a pioneering study that empirically explores the phenomenon of bank deposits variability as a consequence of expansion in cryptocurrencies market capitalization, where the findings proved evidence of a drastic decline in banks’ deposits size due to the substantial growth in cryptocurrencies market capitalization.
Crypto currencies are a rapidly growing financial instrument with a growing number and variety of information technologies that have evolved since Bitcoin's entrance to the market in the beginning of 2009. This rise can be seen as an output source of studies on the function of crypto-currencies as investment tools.
The aim of the study is to evaluate together the risk and return components of cryptocurrencies to determine the its potential to be an investment tool, by taking the historical volatility of the cryptographic currencies into account. As a matter of fact, volatility is an important indicator that reveals the risk of investment instruments. In this context, the transaction volume was evaluated in terms of the highest 100 crypto currencies.
The cryptocurrencies on the market at the end of the calendar year 2016 are ranked according to market capitalizations and the volatility of the 100 crypto currencies that have the highest market capitalization and also in the market before 2015 are calculated on the basis of daily market values. Then these crypto currencies had been classified as sub groups according to their time in market, market capitalizations, market value ranges, openness to mining activities, percentages to be compared to the planned rate in the final stage of the market, the algorithms they use and the proof of work they use. Statistically, it had been analyzed whether there is a significant difference between these subgroups in terms of volatility. Finally, the first six months of 2017 performance of the investment portfolios formed from 30 currencies with the lowest volatility using different criteria were determined.
As a result of the study, it was seen that there was a significant difference between the subgroups of crypto currencies divided in terms of the time elapsed in the market. In the correlation tests conducted, it was seen that there was an inverse correlation between the duration of market presence, market capitalization and unit value and volatility. A linear correlation was found between the percentage of presence in the market and volatility. It is determined that the investment portfolios created can increase its value about 20 times in total during the first 6 months of 2017, which is much higher than other traditional investment instruments
Service composition remains an important topic where recommendation is widely recognized as a core mechanism. Existing works on service recommendation typically examine either association rules from mashup-service usage records, or latent topics from service descriptions. This paper moves one step further, by studying latent topic models over service collaboration history. A concept of service co-occurrence topic is coined, equipped with a mechanism developed to construct service co-occurrence documents. The key idea is to treat each service as a document and its co-occurring services as the bag of words in that document. Four gauges are constructed to measure self-co-occurrence of a specific service. A theoretical approach, Service Co-occurrence LDA (SeCo-LDA), is developed to extract latent service co-occurrence topics, including representative services and words, temporal strength, and services' impact on topics. Such derived knowledge of topics will help to reveal the trend of service composition, understand collaboration behaviors among services and lead to better service recommendation. To verify the effectiveness and efficiency of our approach, experiments on a real-world data set were conducted. Compared with methods of Apriori, content matching based on service description, and LDA using mashup-service usage records, our experiments show that SeCo-LDA can recommend service composition more effectively.
In a decentralized marketplace, buyers and sellers transact directly, without manipulation by intermediary platforms.
The cryptocurrency market has reached a record of \\sim$ 1,500 cryptocurrencies introduced since April 2013. We reveal that, while new cryptocurrencies appear and disappear continuously and the market share of Bitcoin has been constantly decreasing, several statistical properties of the market have been stable for years. These include the number of active cryptocurrencies, the market share distribution and the turnover of cryptocurrencies. Finally, we adopt an ecological perspective and show that the so-called 'neutral model' of evolution, despite its simplicity, reproduces a number of key empirical observations. We anticipate that our results will be of interest to researchers interested in the study and modelling of the structural properties of the cryptocurrency market.
The rise of digital technologies over the past decade has brought significant disruptions to many industry sectors. The emergence of cryptocurrencies, and specifically the underlying blockchain technology that supports Bitcoin, promises a radical transformation of how users engage with financial services. Cryptocurrencies are based on collaborative open source principles and peer-to-peer networks that suggest a commitment to social solidarity. However, as with most disruptive forces, the real trigger for corporate and societal transformation lies with the enabling technologies that support Bitcoin, i.e. the digital technology referred to as ‘the blockchain’. The blockchain is a digitally distributed transaction ledger with identical copies maintained on multiple computer systems and controlled by different entities. This paper seeks to explore the role of cryptocurrencies and blockchain technology for organisations that seek to build social and solidarity-based finance. Finally, the authors proposed a series of reflections for practitioners considering the implementation of blockchain technology.
The paper aims at changing the perception of virtual currencies, presenting them as the potential starting point for the fundamental changes in the functioning of the financial system. Its initial part deals with the problem of lack of universal definition of virtual currencies, pointing out crucial features to be included while conceptualizing the term. Subsequently, the paper describes the operation rules of decentralized virtual currency schemes, indicating that the schemes’ introduction is the reflection of current environmental trends. It also determines virtual currencies’ capacity to substitute cash, scriptural money or e-money. The paper emphasizes that the technology underlying virtual currencies offers benefits going far beyond the schemes themselves and has the potential to transform the financial market. The distributed ledger technology starts to penetrate various segments of the market, modifying the functioning of institutions forming its infrastructure. The technology makes it possible to eliminate intermediate links in processing transactions, accelerate various operations and reduce costs as well as provides the ground for the development of common standardized way of transferring various types of assets. Financial institutions pave the wave for transferring the technology into new fields. The public administration might take the emerging opportunity as there are a variety of possible applications of the distributed ledger technology in the sector. Since taking the full advantage of all the opportunities requires a significant regulatory progress, the final section of the paper addresses the problem of developing appropriate legal framework not stifling innovation on the market.
Illegal activities prosecutable by law in the real life can be committed on the internet alike. In the healthcare domain, we refer mainly to selling of illegal and counterfeit drugs, exchange of pedo-pornographic material and marketing of stolen medical records. These illegal activities are made easier by recent developments of the Internet that medical community must be aware of: darknet and bitcoin. The first allows anonymous surfing and the last anonymous financial transactions.After discussing which healthcare areas are affected by these technological developments of the Internet and the deriving consequences, then the Authors express their opinion on what actions can be taken to protect internet community.
This paper sets out a brief, deliberately non-technical, overview of Bitcoin, a new, but becoming more mainstream, crypto currency, generated and managed by a distributed multi–agent system. Bitcoin was developed in late 2008 by “Satoshi Nakamoto”. The nature of Bitcoin as a disruptive currency, payments system and asset, is juxtaposed against the potential for its transactional ledger, the blockchain, to usher in a revolutionary way of recording “digital truth”. The main contribution of this paper is to progress the debate around Bitcoin beyond the technical and towards legal and ethical issues and the nature of money and memory itself.
This paper describes a study to understand what differentiates organization adopters of Bitcoin from non-adopters by comparing their IT-readiness, innovativeness and social media presence. The craze over cryptocurrency such as Bitcoin has been likened to a modern-day gold rush, yet academic research has not caught up. Governments are struggling with the very idea of cryptocurrency systems. After the price of Bitcoin fell from 300 in 2014, consumer interest flagged, leaving the future of Bitcoin adoption uncertain despite a slow and steady increase of organization adopters. Organization adoption is more important than consumer, because consumers can’t use cryptocurrency if organizations don’t accept them as payment. This research serves as a basis for future research on Bitcoins and Bitcoin adoption by highlighting some important hurdles to its adoption as a new innovation, in the hope that such endeavors move us ever closer to the vision of a true “people’s currency.”
Why Bitcoin matters. The New York Times Dealbook
- M Andreessen
Into the Bitcoin mines. The New York Times
- N Popper
Jeremy Allaire's Bitcoin startup, Circle, unveils first product
- P Vigna
takes a position on Bitcoin: It's property. The New York Times
- R I R S Abrams
The Bitcoin paradox that undid Mt
- E Galston
In Bitcoin-aided crime, some see a digital wild west
- T Hays
New front in Bitcoin probe
- C M Matthews
For Bitcoin, secure future might need oversight. The New York Times
- F Manjoo
Each MIT undergraduate to get $100 in Bitcoin
- P Schworm
Firm wants to help Bitcoin go mainstream
- D Keohane
Angling to be the MasterCard of Bitcoin
- A Kessler
Banks mostly avoid providing Bitcoin services
- R Sidel