Cryptocurrencies and Hyperinflation

Notes on the 21st Century (CBRI), 2019

7 Pages Posted: 5 Feb 2019

See all articles by Usman W. Chohan

Usman W. Chohan

UNSW Business School; Critical Blockchain Research Initiative (CBRI); Centre for Aerospace & Security Studies (CASS)

Date Written: January 21, 2019

Abstract

This discussion paper considers the monetary role that cryptocurrencies can play as hedges against the crises stemming from hyperinflation. It also briefly examines such a relationship vis-a-vis currency devaluation and monetary defaults. The findings suggest that, for all the legitimate criticisms volleyed against cryptocurrencies (governance, legal, security), there are indeed certain macroeconomic issues which can draw upon the decentralized, apolitical, and deflationary monetary nature of cryptocurrencies. These advantages must then be weighted by monetary policy practitioners against the risks that still linger in the cryptocurrency space.

Keywords: Cryptocurrency, Hyperinflation, Bitcoin, Money Supply, Monetary Authority, Default, Currency

Suggested Citation

Chohan, Usman W., Cryptocurrencies and Hyperinflation (January 21, 2019). Notes on the 21st Century (CBRI), 2019. Available at SSRN: https://ssrn.com/abstract=3320702 or http://dx.doi.org/10.2139/ssrn.3320702

Usman W. Chohan (Contact Author)

UNSW Business School ( email )

UNSW Business School
High St
Sydney, NSW 2052
Australia

Critical Blockchain Research Initiative (CBRI) ( email )

Centre for Aerospace & Security Studies (CASS) ( email )

Rawalpindi
Pakistan

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