Cryptocurrency Industry: A Review of Current and Future Trends
Huijian Dong · Auerbach Publications eBooks · 2023
This chapter summarizes the current state of cryptocurrencies and expands their development trajectories to shed light on the industry outlook. It introduces the nature of each cryptocurrency, evaluates cryptocurrencies as financial assets, and assesses cryptocurrencies as money. The chapter uses the most representative cryptocurrency, Bitcoin, as an example. Its issuance is highly decentralized through the execution of computer protocols. Cryptocurrencies are developing as financial capital. This should be distinguished from being recognized as financial assets. Although multiple types of derivatives have grown from cryptocurrencies as introduced in topic two, free-standing cryptocurrencies as an asset class are premature. The accountability of script currencies needs to be interpreted in an innovative way with cryptocurrencies, which includes value accountability, volatility accountability, and technology accountability. Compared to the fiat moneys, cryptocurrencies require a much higher threshold of knowledge, which limits its use within a smaller technologically savvy population as of the early 2020s.