Bitcoin is Memory
Journal of Prices & Markets, 3(3), 2015: 22-33.
12 Pages Posted: 9 Jun 2013 Last revised: 25 Feb 2015
Date Written: June 7, 2013
We maintain that the crypto-currency bitcoin is a practical application of what is termed “memory” in the monetary economics literature. After reviewing the theoretical literature on money and memory, we offer a brief overview of the bitcoin protocol and argue that, like memory, bitcoin functions as a public record-keeping device. Finally, we provide evidence that — in line with the standard theoretical account of memory — bitcoin use has soared as the expected cost of storing traditional monies increased.
Keywords: bitcoin, crypto-currency, currency competition, medium of exchange, memory, monetary standard, money, payment system
JEL Classification: E40, E42, E49
Suggested Citation: Suggested Citation