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Handbook of digital currency : bitcoin, innovation, financial instruments, and big data /

Handbook of Digital Currency: Bitcoin, Innovation, Financial Instruments, and Big Data, Second Edition offers readers new ways to learn about subjects outside their specialties and provides authoritative background and tools for those whose primary source of information is journal articles. Encompas...

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Bibliographic Details
Corporate Author: ScienceDirect (Online service)
Other Authors: Lee Kuo Chuen, David (Editor)
Format: eBook
Language:English
Published: London, United Kingdom : Academic Press, 2024.
Edition:Second edition.
Subjects:
Cryptocurrencies > Handbooks, manuals, etc.
Bitcoin > Handbooks, manuals, etc.
Electronic commerce > Handbooks, manuals, etc.
Cryptocurrencies.
Bitcoin.
Cryptomonnaie > Guides, manuels, etc.
Bitcoin > Guides, manuels, etc.
Commerce électronique > Guides, manuels, etc.
Cryptomonnaie.
cryptocurrencies.
Electronic books.
Online Access:Connect to the full text of this electronic book
Table of Contents:
  • Front Cover
  • Handbook of Digital Currency
  • Handbook of Digital Currency
  • Copyright
  • Contents
  • Contributors
  • Foreword
  • Preface
  • 1
  • Digital currency and bitcoin
  • 1
  • Introduction to Bitcoin
  • 1.1 THE NEXT GENERATION OF MONEY AND PAYMENTS
  • 1.2 DIGITAL CURRENCY AS ALTERNATIVE CURRENCY
  • 1.2.1 "Digital" versus "virtual"
  • 1.2.2 Classifying alternative currencies
  • 1.2.2.1 Currencies with intrinsic utility
  • 1.2.2.2 Token
  • 1.2.2.3 Centralized digital currency
  • 1.2.2.4 Distributed and/or decentralized digital currency
  • 1.2.3 Why alternative currencies
  • 1.2.3.1 Localism
  • 1.2.3.2 Technology
  • 1.2.3.3 Political economy
  • 1.2.3.4 Environmentalism
  • 1.2.3.5 Inefficiencies
  • 1.2.3.6 Financial freedom
  • 1.2.3.7 Speculation
  • 1.3 CRYPTOCURRENCY
  • 1.3.1 The nature of cryptocurrency
  • 1.3.2 The beginning: eCash
  • 1.3.3 Pioneering internet payments with digital gold
  • 1.3.4 Revival of cryptocurrency
  • 1.3.5 The rise of bitcoin
  • 1.4 GENERAL FEATURES OF BITCOIN
  • 1.4.1 Network and digital currency
  • 1.4.2 Genesis and decentralized control
  • 1.4.3 How bitcoin works
  • 1.4.4 Buying and storing bitcoins
  • 1.4.5 Mining to create new bitcoins and process transactions
  • 1.4.6 Security and cryptography
  • 1.4.7 Pseudoanonymity
  • 1.5 BENEFITS AND RISKS
  • 1.5.1 Freedom of payments
  • 1.5.2 Merchant benefits
  • 1.5.3 User control
  • 1.5.4 Platform for further innovation
  • 1.5.5 Internal change and volatility
  • 1.5.6 Facilitation of criminal activity
  • 1.5.7 Legal regulatory attitude
  • 1.5.8 Economic risk
  • 1.6 IMPACT OF THE DIGITAL CURRENCY REVOLUTION
  • 1.7 CONDITIONS FOR A SUCCESSFUL CRYPTOCURRENCY
  • 1.7.1 Ecosystem
  • 1.7.2 Incentives
  • 1.7.3 Identification
  • 1.8 FUTURE PROSPECTS AND CONCLUSION
  • ACKNOWLEDGMENTS
  • REFERENCES
  • 2
  • Is Bitcoin a Real Currency? An Economic Appraisal
  • 2.1 INTRODUCTION.
  • 2.2 HISTORY AND BACKGROUND OF BITCOIN
  • 2.3 BITCOIN'S WEAKNESSES AS A CURRENCY
  • 2.3.1 Medium of exchange
  • 2.3.2 Unit of account
  • 2.3.3 Store of value
  • 2.4 CONCLUSION: OBSTACLES FACED BY BITCOIN
  • ACKNOWLEDGMENTS
  • REFERENCES
  • 3
  • Bitcoin Mining Technology
  • 3.1 INTRODUCTION
  • 3.1.1 A distributed or decentralized network?
  • 3.2 TECHNOLOGY BEHIND BITCOIN
  • 3.2.1 Block
  • 3.2.2 Blockchain
  • 3.2.3 Block hashing mechanism
  • 3.2.4 Bitcoin address
  • 3.3 MINING PROCESS
  • 3.4 MINING POSSIBILITIES
  • 3.4.1 Solo mining
  • 3.4.2 Hardware
  • 3.4.3 Software
  • 3.4.4 Factors to consider8
  • 3.4.5 Mining contracts
  • 3.5 MINING POOLS
  • 3.5.1 Reward types
  • 3.6 THREATS TO MINING
  • 3.6.1 Security threats
  • 3.6.2 Political threats
  • 3.7 RELOCATION OF MINING FACILITIES
  • 3.8 RECENT ADVANCEMENTS
  • 3.9 CONCLUSION
  • REFERENCES
  • FURTHER READING
  • 4
  • National Cryptocurrencies
  • 4.1 THE FIRST WAVE
  • 4.1.1 AuroraCoin
  • 4.1.1.1 SpainCoin
  • 4.1.1.2 PesetaCoin
  • 4.1.1.3 GreeceCoin
  • 4.1.1.4 ScotCoin
  • 4.1.2 AphroditeCoin
  • 4.1.3 GaelCoin
  • 4.1.4 IrishCoin
  • 4.1.5 CryptoEscudo
  • 4.1.6 Deutsche eMark
  • 4.1.7 Ekrona
  • 4.1.8 eGulden
  • 4.1.9 MazaCoin
  • 4.1.10 MapleCoin
  • 4.1.11 IsraCoin
  • 4.2 THE FUTURE OF NATIONAL CRYPTOCURRENCY
  • 4.2.1 More than currency
  • 4.3 CONCLUSION
  • SOURCES
  • 5
  • Evaluating the Potential of Alternative Cryptocurrencies
  • 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
  • 5.5.1 Community support
  • 5.5.2 Developer activity
  • 5.5.3 Liquidity
  • 5.5.4 Market capitalization
  • 5.5.5 Overall rank
  • 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.
  • 5A.1 Time series data analysis of bitcoin: Cointegration analysis through VECM and Granger causality test
  • 5A.1.1 Data
  • 5A.1.2 Methodology
  • 5A.1.2.1 Unit root test
  • 5A.1.2.2 Cointegration test
  • 5A.1.2.3 Vector error-correction model
  • 5A.1.3 Empirical results
  • 5A.1.3.1 Unit root test results
  • 5A.1.3.2 Granger causality test on developer activity and community strength system
  • 5A.1.3.3 VECM for liquidity system
  • 5A.2 Cross-sectional data analysis on altcoins: Linear and quantile regression
  • 5A.2.1 Data
  • 5A.2.2 Methodology
  • 5A.2.2.1 Linear regression
  • 5A.2.2.2 Quantile regression
  • 5.A.2.3 Linear regression estimation
  • 5.A.2.4 Quantile regression estimation
  • Key factors' analysis
  • 5A.3 Conclusion and issues
  • APPENDIX
  • Key factors' analysis
  • REFERENCES
  • REFERENCES
  • REFERENCES
  • 6
  • The Effect of Payment Reversibility on E-Commerce and Postal Quality
  • 6.1 INTRODUCTION
  • 6.2 THE MODEL
  • 6.3 BASIC CASE
  • 6.4 RESULTS WITH POSTAL QUALITY
  • 6.5 CONCLUSION
  • REFERENCES
  • 7
  • Blockchain and Digital Payments: An Institutionalist Analysis of Cryptocurrencies
  • 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
  • ACKNOWLEDGMENTS
  • REFERENCES
  • 8
  • Counterfeiting in Cryptocurrency: An Emerging Problem
  • 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
  • 8.3.1 Ownership and transferability
  • 8.3.2 The ability to store value
  • 8.3.3 Security in property rights.
  • 8.4 COUNTERFEITING: METHODS, MOTIVATION, AND OPPORTUNITIES
  • 8.5 THE GLOBAL ANTICOUNTERFEITING INITIATIVE
  • 8.6 DETERRING COUNTERFEITING IN THE FUTURE
  • 8.7 SUMMARY
  • REFERENCES
  • FURTHER READING
  • 9
  • Emergence, Growth, and Sustainability of Bitcoin: The Network Economics Perspective
  • 9.1 NETWORK ECONOMICS AND CRYPTOCURRENCIES
  • 9.1.1 Gaining critical mass
  • 9.1.1.1 Direct externalities
  • 9.1.1.2 Indirect externalities
  • 9.1.1.3 Other implications of network externalities
  • 9.2 SUSTAINABILITY OF A CRYPTOCURRENCY NETWORK
  • 9.2.1 Incentives of mining
  • 9.2.2 An agent-based simulation of miners' incentive over time
  • 9.2.3 On bitcoins and red balloons
  • 9.3 DISCUSSION/CONCLUSION
  • REFERENCES
  • 10
  • Cryptocurrencies as Distributed Community Experiments
  • 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
  • 10.4.1 From a distributed system to possible centralization: The mining arms race
  • 10.4.2 The "Goldfinger attack" and the "tragedy of the commons"
  • 10.4.3 Block generation time and transaction speed
  • 10.4.4 Energy usage
  • 10.4.5 Velocity of circulation and the deflationary spiral
  • 10.4.6 Anonymity and privacy in cryptocurrencies
  • 10.4.7 Social currencies
  • 10.5 THE FUTURE OF THE BLOCKCHAIN
  • 10.5.1 The Bitcoin blockchain does not scale (yet)
  • 10.6 CONCLUSION
  • REFERENCES
  • FURTHER READING
  • 11
  • Extracting Market-Implied Bitcoin's Risk-Free Interest Rate
  • 11.1 INTRODUCTION
  • 11.2 A MODEL FOR THE DETERMINATION OF BITCOIN'S RISK-FREE INTEREST RATE
  • 11.2.1 Uncovered interest rate parity
  • 11.2.2 Monetary economic theory
  • 11.2.3 A time-varying premium model
  • 11.3 APPLICATION TO US AND EURO DATA.
  • 11.4 PERSPECTIVE ON BITCOIN INTEREST RATE
  • 11.5 CONCLUSION
  • REFERENCES
  • 12
  • A Microeconomic Analysis of Bitcoin and Illegal Activities
  • 12.1 INTRODUCTION
  • 12.2 THE BASELINE MODEL
  • 12.2.1 Compliant consumers
  • 12.2.2 Noncompliant consumers
  • 12.2.3 Production technologies
  • 12.3 MARKET EQUILIBRIUM
  • 12.4 DEMAND FOR BITCOINS
  • 12.5 EXTENSIONS
  • 12.5.1 Variable fines
  • 12.5.2 Bitcoin theft
  • 12.6 CONCLUDING REMARKS
  • ACKNOWLEDGMENTS
  • REFERENCES
  • 13
  • Legal Issues in Cryptocurrency
  • 13.1 INTRODUCTION
  • 13.2 LEGALITY VERSUS ILLEGAL
  • 13.2.1 Validity of transaction as a currency
  • 13.2.2 Validity of transaction as a foreign currency
  • 13.2.3 Tax incidences and stamp duty
  • 13.2.4 Filing suit in cases of legal disputes
  • 13.2.5 Organizational status of promoters and participators
  • 13.2.6 Monetary and fiscal policies
  • 13.3 GLOBAL REGULATORY MOVEMENT
  • 13.4 CONCLUSION
  • REFERENCES
  • FURTHER READING
  • 14
  • Cryptocurrency and Virtual Currency: Corruption and Money Laundering/Terrorism Financing Risks?
  • 14.1 CORRUPTION: A SOCIAL EVIL
  • 14.2 REVIEW OF FINANCIAL ACTION TASK FORCE ON MONEY LAUNDERING COMPLIANCE ON PEPS
  • 14.2.1 Noncompliant and partially compliant jurisdictions
  • 14.2.2 Recommendations
  • 14.3 CRYPTOCURRENCIES AND VIRTUAL CURRENCIES AND THEIR POTENTIAL TO BE MISUSED FOR MONEY LAUNDERING
  • 14.4 THE WAY FORWARD: A CONCEPTUAL INTELLIGENCE-LED AML/CTF STRATEGY
  • REFERENCES
  • 15
  • A Light Touch of Regulation for Virtual Currencies
  • 15.1 INTRODUCTION
  • 15.1.1 Virtual currency
  • 15.1.2 Decentralized cryptocurrency
  • 15.1.3 Market participants in a virtual currency system
  • 15.2 LEGITIMATE USES
  • 15.3 POTENTIALLY REGULATED RISKS
  • 15.3.1 Counterparty risk in a virtual, decentralized system
  • 15.3.2 Consumer protection: Loss and theft
  • 15.3.3 Financial crime.