Blockchain and Investment: An Austrian Approach

Investment is a function of expected profit, which involves calculation of the cost of trust. Blockchain technology is a new institutional technology (Davidson et al 2018) that industrialises trust (Berg et al 2018). We therefore expect that the adoption of blockchain technology into the economy will affect investment and capital structure. Using a broad Austrian economic approach, we examine how blockchain technology will affect the cost of trust, patterns of investment, and economic institutions.

Keywords: Blockchain Technology, Austrian Capital Theory, Institutional Cryptoeconomics, Cost of Trust

Suggested Citation: Suggested Citation

Allen, Darcy W E and Berg, Chris and Davidson, Sinclair and Potts, Jason, Blockchain and Investment: An Austrian Approach (January 28, 2020). Allen, DWE, Berg, C, Davidson, S and Potts, J, ‘Blockchain and Investment: An Austrian Approach’, Review of Austrian Economics, Forthcoming , Available at SSRN: https://ssrn.com/abstract=3526620 or http://dx.doi.org/10.2139/ssrn.3526620