Blockchain and Investment: An Austrian Approach

Allen, DWE, Berg, C, Davidson, S and Potts, J, ‘Blockchain and Investment: An Austrian Approach’, Review of Austrian Economics, Forthcoming

14 Pages Posted: 24 Feb 2020

See all articles by Darcy W E Allen

Darcy W E Allen

RMIT University

Chris Berg

RMIT University - School of Economics, Finance and Marketing

Sinclair Davidson

RMIT University

Jason Potts

RMIT University

Date Written: January 28, 2020

Abstract

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

Allen, Darcy 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

Darcy Allen (Contact Author)

RMIT University ( email )

440 Elizabeth Street
Melbourne, 3000
Australia

Chris Berg

RMIT University - School of Economics, Finance and Marketing ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

Sinclair Davidson

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Jason Potts

RMIT University ( email )

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