Understanding Bitcoin: Money, Asset, or Bubble?

Social Education, Vol. 82, No. 2, March/April 2018

Posted: 3 Jun 2018

See all articles by J. R. Clark

J. R. Clark

The University of Tennessee at Chattanooga

M. Scott Niederjohn

Independent

William C. Wood

James Madison University

Date Written: March 1, 2018

Abstract

The cryptocurrency Bitcoin has been prominently featured in the news recently. Its ascension in value has been nothing short of extraordinary. This article briefly explains what Bitcoin is and how it works. The more challenging question is what Bitcoin — this cryptographic breakthrough — really is: currency, like the U.S. dollar, an asset, more like gold, or something else? Further, can this astonishing run-up in value continue or will Bitcoin be added to the long list of so-called "asset bubbles" that eventually burst, causing pain for those that own them?

Suggested Citation

Clark, Jeff R. and Niederjohn, M. Scott and Wood, William C., Understanding Bitcoin: Money, Asset, or Bubble? (March 1, 2018). Social Education, Vol. 82, No. 2, March/April 2018. Available at SSRN: https://ssrn.com/abstract=3182711

Jeff R. Clark (Contact Author)

The University of Tennessee at Chattanooga ( email )

Department of Economics
Suite 313 Fletcher Hall
Chattanooga, TN 37403-2598
United States

M. Scott Niederjohn

Independent

No Address Available

William C. Wood

James Madison University

Harrisonburg, VA 22807
United States

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