The Economics Behind Cryptocurrency - 1. Monetarism

econometrician (25)in #economics • 7 years ago (edited)

First originated by Satoshi Nakamoto who mined genesis block of bitcoins ever in January 2009, thousands of new bitcoins came to the world. Each of new coins issued through Initial Coin Offering (ICO) has their own white paper to insist what distinctive values the coin have and how the function of coin differs from the others. Many coins all look different - RPX (Ripple) focuses on fast and low-cost financial transactions and MED (Medibloc) stores and manages the personal health record; however, they always have something common in the whitepaper including:

Decentralized
Open source platform
Issuance limit

The fact that total circulation volume of BTC (Bitcoin) is fixed to 21,000,000 coins exemplifies the issuance limit. (You can see the genesis white paper entitled Bitcoin v0.1 released written by Satoshi Nakamoto and you can even find the replies and answers by Satoshi Nakamoto, whose answers contain dialogues with those who doubt idea of PoW (Proof-of-Work) process or mistrust the uselessness of authentication of trusted third party)

In this article, I try to demonstrate the economics implied in the limitation volume of coin issuance.

#kr-newbie #cryptocurrency #monetarism

7 years ago in #economics by econometrician (25)

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krguidedog (64) 7 years ago

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