The Economics of Cryptocurrencies - Why Does It Work?

11 Pages Posted: 3 Aug 2020

Date Written: June 6, 2020


The impact of the introduction of cryptocurrencies in all economies are discussed here. The advantages of using cryptocurrencies as well as the drawbacks of traditional digital payments are covered. Cryptocurrency aimed to revolutionize the digital payments market; however, it does give rise to many questions as to its cost, reliability, and the future competition amongst the cryptocurrencies as well. In this paper, I try to answer the basic questions arising due to the introduction of cryptocurrencies, as well as the economic problems it presents.

Keywords: Bitcoin, Ripple, Ethereum, Cryptocurrencies, Cryptocurrency, Economics, Digital, currency

JEL Classification: D31, D51, G18, G23

Suggested Citation

Kishore Jain, Divij, The Economics of Cryptocurrencies - Why Does It Work? (June 6, 2020). Available at SSRN: or

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