Bitcoins, Cryptocurrencies and BlockChains

Abstract

The U.S. has approximately 1,600 cryptocurrencies. No cryptocurrency is qualified to be called money because none has been designated by the U.S. government as being legal tender. Cryptocurrencies are called virtual currencies because they possess a few of the qualities of money. In this article, three issues related to cryptocurrencies are analyzed. First, bitcoins are considered, because they are the principal cryptocurrency. Second, an assessment of the processes the Federal Reserve and the central bank of Sweden are going through to evaluate the possibility of issuing some not-yet-fully-defined new form of electronic currency. Third, an examination of the viability of blockchain, which was introduced as an internal component of bitcoin, as a successful stand-alone technology.

Keywords: Bitcoins, Cryptocurrencies, Blockchains, Money

JEL Classification: G29