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

Royal Melbourne Institute of Technolog (RMIT University)

Chris Berg

Royal Melbourne Institute of Technolog (RMIT University)

Sinclair Davidson

RMIT University

Jason Potts

Royal Melbourne Institute of Technolog (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 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

Darcy W E Allen (Contact Author)

Royal Melbourne Institute of Technolog (RMIT University) ( email )

Melbourne, 3000
Australia

Chris Berg

Royal Melbourne Institute of Technolog (RMIT University) ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Sinclair Davidson

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Jason Potts

Royal Melbourne Institute of Technolog (RMIT University) ( email )

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