Bitcoin 1, Bitcoin 2, ....: An Experiment in Privately Issued Outside Monies

11 Pages Posted: 5 Jun 2018

See all articles by Rodney Garratt

Rodney Garratt

University of California, Santa Barbara (UCSB)

Neil Wallace

Pennsylvania State University, College of the Liberal Arts - Department of Economic

Date Written: July 2018

Abstract

The value of bitcoin depends upon self‐fulfilling beliefs that are hard to pin down. We demonstrate this for the case where bitcoin is the only form of money in the economy and then generalize the message to the case of multiple bitcoin clones and/or a competing fiat currency. Some aspects of the indeterminacy we describe would no longer hold if bitcoin were an interest‐bearing object.

JEL Classification: D50, E42

Suggested Citation

Garratt, Rodney and Wallace, Neil, Bitcoin 1, Bitcoin 2, ....: An Experiment in Privately Issued Outside Monies (July 2018). Economic Inquiry, Vol. 56, Issue 3, pp. 1887-1897, 2018. Available at SSRN: https://ssrn.com/abstract=3188597 or http://dx.doi.org/10.1111/ecin.12569

Rodney Garratt (Contact Author)

University of California, Santa Barbara (UCSB) ( email )

Neil Wallace

Pennsylvania State University, College of the Liberal Arts - Department of Economic ( email )

524 Kern Graduate Building
University Park, PA 16802-3306
United States
814-863-3805 (Phone)
814-863-4775 (Fax)

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