Handbook of Digital Currency
Bitcoin, Innovation, Financial Instruments, and Big Data
- 1st Edition - April 29, 2015
- Language: English
Incorporating currencies, payment methods, and protocols that computers use to talk to each other, digital currencies are poised to grow in use and importance. The Handbook… Read more
Incorporating currencies, payment methods, and protocols that computers use to talk to each other, digital currencies are poised to grow in use and importance. The Handbook of Digital Currency gives readers a way to learn about subjects outside their specialties and provides authoritative background and tools for those whose primary source of information is journal articles. Taking a cross-country perspective, its comprehensive view of the field includes history, technicality, IT, finance, economics, legal, tax and regulatory environment. For those who come from different backgrounds with different questions in mind, The Handbook of Digital Currency is an essential starting point.
- Discusses all major strategies and tactics associated with digital currencies, their uses, and their regulations
- Presents future scenarios for the growth of digital currencies
- Written for regulators, crime prevention units, tax authorities, entrepreneurs, micro-financiers, micro-payment businesses, cryptography experts, software developers, venture capitalists, hedge fund managers, hardware manufacturers, credit card providers, money changers, remittance service providers, exchanges, and academics
- Winner of the 2015 "Outstanding Business Reference Source" by the Reference and User Services Association (RUSA)
Upper-division undergraduates, graduate students, and professionals working in disciplines associated with virtual currencies, including financial institutions, computer technology, regulatory and taxation agencies, and financial markets.
- Dedication
- Preface and Acknowledgments
- Part 1: Digital Currency and Bitcoin
- Section One: Bitcoin and Alternative Cryptocurrencies
- Chapter 1: Introduction to Bitcoin
- Abstract
- Acknowledgments
- 1.1 The next generation of money and payments
- 1.2 Digital currency as alternative currency
- 1.3 Cryptocurrency
- 1.4 General features of bitcoin
- 1.5 Benefits and risks
- 1.6 Impact of the digital currency revolution
- 1.7 Conditions for a successful cryptocurrency
- 1.8 Future prospects and conclusion
- Chapter 2: Is Bitcoin a Real Currency? An Economic Appraisal
- Abstract
- Acknowledgments
- 2.1 Introduction
- 2.2 History and background of bitcoin
- 2.3 Bitcoin’s weaknesses as a currency
- 2.4 Conclusion: obstacles faced by bitcoin
- Chapter 3: Bitcoin Mining Technology
- Abstract
- 3.1 Introduction
- 3.2 Technology behind bitcoin
- 3.3 Mining process
- 3.4 Mining possibilities
- 3.5 Mining pools
- 3.6 Threats to mining
- 3.7 Recent advancements
- 3.8 Conclusion
- Chapter 4: National Cryptocurrencies
- Abstract
- 4.1 The first wave
- 4.2 The future of national cryptocurrency
- 4.3 Conclusion
- Chapter 5: Evaluating the Potential of Alternative Cryptocurrencies
- Abstract
- 5.1 Introduction
- 5.2 Different types of altcoins
- 5.3 Launching an altcoin
- 5.4 Data collection and altcoin evaluation strategy
- 5.5 Altcoin evaluation results
- 5.6 Empirical research using social network data
- 5.7 Empirical analysis using time series and cross-section data
- 5.8 Conclusion
- Appendix Empirical analysis of bitcoin and altcoins
- Key factors’ analysis
- Chapter 1: Introduction to Bitcoin
- Section Two: E-Payment and Security
- Chapter 6: The Effect of Payment Reversibility on E-commerce and Postal Quality
- Abstract
- 6.1 Introduction
- 6.2 The model
- 6.3 Basic case
- 6.4 Results with postal quality
- 6.5 Conclusion
- Chapter 7: Blockchain and Digital Payments: An Institutionalist Analysis of Cryptocurrencies
- Abstract
- Acknowledgments
- 7.1 Introduction
- 7.2 Definition
- 7.3 The structure and the incentives behind the supply and demand of cryptocurrencies
- 7.4 Understanding institutional change
- 7.5 The ceremonial encapsulation of cryptocurrencies in the established model of regulation for digital payments
- 7.6 Cryptocurrencies as mature payment technologies: challenges in the near future
- 7.7 Conclusions
- Chapter 8: Counterfeiting in Cryptocurrency: An Emerging Problem
- Abstract
- 8.1 Chapter overview
- 8.2 Introduction: cryptocurrency has virtually evolved from hard currency
- 8.3 The basic function of currency: a medium of exchange
- 8.4 Counterfeiting: methods, motivation, and opportunities
- 8.5 The global anticounterfeiting initiative
- 8.6 Deterring counterfeiting in the future
- 8.7 Summary
- Chapter 6: The Effect of Payment Reversibility on E-commerce and Postal Quality
- Section Three: Big Data and Network Effect
- Chapter 9: Emergence, Growth, and Sustainability of Bitcoin: The Network Economics Perspective
- Abstract
- 9.1 Network economics and cryptocurrencies
- 9.2 Sustainability of a cryptocurrency network
- 9.3 Discussion/Conclusion
- Chapter 10: Cryptocurrencies as Distributed Community Experiments
- Abstract
- 10.1 Introduction
- 10.2 From bitcoin as single cryptocurrency to an ecosystem of cryptocurrencies
- 10.3 Altcoins as evolutionary problem solving and “proof of concepts”
- 10.4 Overview of the main critique and discourse on cryptocurrencies
- 10.5 The future of the blockchain
- 10.6 Conclusion
- Chapter 11: Extracting Market-Implied Bitcoin's Risk-Free Interest Rate
- Abstract
- 11.1 Introduction
- 11.2 A model for the determination of bitcoin's risk-free interest rate
- 11.3 Application to US$ and euro data
- 11.4 Perspective on bitcoin interest rate
- 11.5 Conclusion
- Chapter 12: A Microeconomic Analysis of Bitcoin and Illegal Activities
- Abstract
- Acknowledgments
- 12.1 Introduction
- 12.2 The baseline model
- 12.3 Market equilibrium
- 12.4 Demand for bitcoins
- 12.5 Extensions
- 12.6 Concluding remarks
- Chapter 9: Emergence, Growth, and Sustainability of Bitcoin: The Network Economics Perspective
- Section One: Bitcoin and Alternative Cryptocurrencies
- Part 2: Finance Markets and Bitcoin
- Section Four: Regulation and Taxation
- Chapter 13: Legal Issues in Cryptocurrency
- Abstract
- 13.1 Introduction
- 13.2 Legality versus illegal
- 13.3 Global regulatory movement
- 13.4 Conclusion
- Chapter 14: How to Tax Bitcoin?
- Abstract
- 14.1 Introduction
- 14.2 Characteristic and nature of bitcoin
- 14.3 Income tax
- 14.4 Consumption tax
- 14.5 National approaches
- 14.6 Conclusions
- Chapter 15: Cryptocurrency and Virtual Currency: Corruption and Money Laundering/Terrorism Financing Risks?
- Abstract
- 15.1 Corruption: a social evil
- 15.2 Review of financial action task force on money laundering compliance on PEPs
- 15.3 Cryptocurrencies and virtual currencies and their potential to be misused for money laundering
- 15.4 The way forward: a conceptual intelligence-led AML/CTF strategy
- Chapter 16: A Light Touch of Regulation for Virtual Currencies
- Abstract
- 16.1 Introduction
- 16.2 Legitimate uses
- 16.3 Potentially regulated risks
- 16.4 Survey of regulatory approaches in tackling these risks
- 16.5 Highlight on US regulation
- 16.6 Toward a light-touch approach to regulation
- Chapter 17: Real Regulation of Virtual Currencies
- Abstract
- 17.1 Introduction
- 17.2 Background
- 17.3 Bitcoin prosecutions
- 17.4 FinCEN regulation of virtual currencies
- 17.5 SEC regulation of virtual currencies
- 17.6 CFTC regulation of virtual currencies
- 17.7 IRS treatment of virtual currencies
- 17.8 FINRA concerns regarding virtual currencies
- 17.9 Congressional concerns regarding virtual currencies
- 17.10 Conclusions
- Chapter 18: A Facilitative Model for Cryptocurrency Regulation in Singapore
- Abstract
- 18.1 Introduction
- 18.2 Background to cryptocurrencies
- 18.3 Clear and targeted regulation
- 18.4 A Self-regulatory framework
- 18.5 International coordination and harmonization
- 18.6 Conclusion
- Chapter 13: Legal Issues in Cryptocurrency
- Section Five: Financial Innovation and Internet of Money
- Chapter 19: Advancing Egalitarianism
- Abstract
- 19.1 Introduction
- 19.2 Development of centrally controlled money systems
- 19.3 A new paradigm: decentralization of authorities
- 19.4 Practicalities
- 19.5 The future of blockchain-based systems
- 19.6 Conclusion
- Chapter 20: How Digital Currencies Will Cascade up to a Global Stable Currency: The Fundamental Framework for the Money of the Future
- Abstract
- 20.1 Introduction
- 20.2 Commodity-backed digital mint
- 20.3 Derived commodities
- 20.4 Cascading
- 20.5 Outlook
- Chapter 21: Bitcoin-Like Protocols and Innovations
- Abstract
- 21.1 The bitcoin system and the element of trust
- 21.2 A new digital commodity
- 21.3 Pseudonymous ownership and trades
- 21.4 An open and decentralized ledger system
- 21.5 Blockchain, mining, block time, and forks
- 21.6 Validation of transaction over a peer-to-peer network
- 21.7 Operation via open-source protocols
- 21.8 The anatomy of bitcoin
- 21.9 Bitcoin ecosystem
- 21.10 Benefits of bitcoin: an assessment
- 21.11 Future-proofing bitcoin: addressing key risks
- 21.12 Potential demand drivers for bitcoin
- 21.13 Conclusions: the new vistas opened up by bitcoin
- Chapter 22: Blockchain Electronic Vote
- Abstract
- 22.1 The problem with proprietary voting systems
- 22.2 Open-source, free software electronic transaction and voting systems
- 22.3 Conclusion
- Chapter 23: Translating Commons-Based Peer Production Values into Metrics: Toward Commons-Based Cryptocurrencies
- Abstract
- 23.1 Introduction
- 23.2 Commons-based Peer production
- 23.3 Value metrics
- 23.4 Complementary currencies
- 23.5 Conclusion
- Chapter 24: The Confluence of Bitcoin and the Global Sharing Economy
- Abstract
- 24.1 2008 Stimulus
- 24.2 Confluence of bitcoin and the global sharing economy
- 24.3 Sharing economy
- 24.4 Resource ownership versus access
- 24.5 Mental accounting
- 24.6 Bitcoin
- 24.7 Distributed network
- 24.8 Token lifecycle
- 24.9 Device level resources
- Chapter 25: What Does Cryptocurrency Mean for the New Economy?
- Abstract
- Acknowledgment
- 25.1 Introduction
- 25.2 Bitcoin
- 25.3 A money narrative
- 25.4 Beyond money
- 25.5 Conclusions
- Chapter 26: Bitcoin: A Look at the Past and the Future
- Abstract
- 26.1 Reasons for success and failure
- 26.2 A numismatic approach
- 26.3 The end of money
- 26.4 The role of the government
- 26.5 The role of banks
- 26.6 Future possibilities
- Chapter 19: Advancing Egalitarianism
- Section Six: Investments and Crowdfunding
- Chapter 27: Bitcoin IPO, ETF, and Crowdfunding
- Abstract
- Acknowledgment
- 27.1 Introduction
- 27.2 IPO: Digital CC
- 27.3 ETF: WBT
- 27.4 Crowdfunding
- 27.5 Conclusion
- Chapter 28: Bitcoin Exchanges
- Abstract
- 28.1 Introduction
- 28.2 Bitcoin exchanges
- 28.3 Exposure to risk of exchange failure
- 28.4 Survival time of an exchange
- 28.5 Discussion
- 28.6 Conclusion
- Chapter 27: Bitcoin IPO, ETF, and Crowdfunding
- Section Four: Regulation and Taxation
- Index
- Edition: 1
- Published: April 29, 2015
- Language: English
Read Handbook of Digital Currency on ScienceDirect