Bitcoin: What Does Mainstream Economics Have to Say?

49 Pages Posted: 30 Mar 2024

Date Written: March 1, 2024


As it relates to Bitcoin, there are several interesting questions to address:

(1) Why does money exist and what role does it play in society? How does bitcoin fit within our understanding of the role of money in society?
(2) What is bitcoin worth?
(3) Is bitcoin (or can bitcoin be) a sound form of money?
(4) Should states or governments be involved? Should they buy bitcoin?

In this paper, I attempt to provide some answers to these questions by drawing on insights from mainstream economic theory.

Keywords: bitcoin, cryptocurrency, sound money

JEL Classification: E02, E42

Suggested Citation

Hendrickson, Joshua R., Bitcoin: What Does Mainstream Economics Have to Say? (March 1, 2024). AIER Sound Money Project Working Paper No. 2024-07, Available at SSRN: or

Joshua R. Hendrickson (Contact Author)

University of Mississippi ( email )

Oxford, MS 38677
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics