Bitcoin: Main Trends and Perspectives
N. E. Egorova *
Department of Economics, Central Economic and Mathematical Institute Russian Academy of Science (CEMI RAS), Russia and Department of Economic, Lomonosov Moscow State University (MSU), Russia
K. A. Torzhevskiy
Department of Economics, Central Economic and Mathematical Institute Russian Academy of Science (CEMI RAS), Russia
*Author to whom correspondence should be addressed.
Abstract
Background: Methodological ground for Bitcoin (BTC) as a variation of private money was settled by F. von Hayek (Denationalization of Money: An Analysis of the Theory and Practice of Concurrent Currencies - London Institute of Economic Affairs, 1976). Article takes a point of view on BTC as a modern example of private money based on IT - technology and principles of cryptocurrency exchange.
Aims: We aimed to define BTC specifics as a competitive alternative currency and to establish its main trends and perspectives.
Study Design: Analytical review.
Place and Duration of Study: CEMI Russian Academy of Sciences, 2013-2015.
Methodology: Methodology is based on complex approach which includes retrospective analysis of historical events, predating the appearance of BTC, formally logical look on main problems for BTC user likely to encounter; and an IT-leading exert evaluation method to forecast its main trends and perspectives.
Results: We have established a set of mathematical equations to reflect main source of income for BTC-user; covered potential perspectives of BTC (based on this set), in case of different development scenarios (different types of government regulations on BTC) including low purchasing capacities during imposed restriction.
Conclusion: BTC is an important innovation in a financial exchange. Very fact of it emergence reflects todays main modern trend towards "information society". Exchange systems like BTC (improved, revised, upgraded) should take it rightful place in everyday life.
Keywords: Alternative private money, e-currency, cryptocurrency, shadow economy, emission, revenues from mining, mining costs, BTC rate