Can Bitcoin Become a Major Currency?

9 Pages Posted: 6 Jun 2014 Last revised: 21 Jul 2014

William J. Luther

Kenyon College

Lawrence H. White

George Mason University - Department of Economics

Date Written: June 5, 2014

Abstract

At present, bitcoin is held mostly as a speculative vehicle, little used to pay for goods and services. Its value has been unstable, which impedes bitcoin’s wider use as a payment medium. We explain why the value of bitcoin has been so unstable. Then, we discuss entrepreneurial efforts that might enable bitcoin to become a more commonly accepted payment medium.

Keywords: Bitcoin, Medium of Exchange, Store of Value, Unit of Account

JEL Classification: E40, E41, E42

Suggested Citation

Luther, William J. and White, Lawrence H., Can Bitcoin Become a Major Currency? (June 5, 2014). GMU Working Paper in Economics No. 14-17. Available at SSRN: https://ssrn.com/abstract=2446604 or http://dx.doi.org/10.2139/ssrn.2446604

William J. Luther (Contact Author)

Kenyon College ( email )

Gambier, OH 43022
United States

HOME PAGE: http://www.wluther.com

Lawrence H. White

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

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