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Cryptocurrencies in the Light of Money Definitions

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  • Robert Poskart

Abstract

Purpose: The aim of the article is to attempt to assess the phenomenon of digital currencies through the prism of existing money definitions as well as to determine to what extent the existing definitions of money are able to answer the question whether private decentralized digital currencies are money in the traditional sense or are they a completely new phenomenon that cannot be put in the framework of previous definitions of money. Design/methodology/approach: This study provides a critical literature review of the cryptocurrency’s definitions in comparison to traditional money definition. The literature review was intended to determine whether bitcoin could be treated as money. Findings: The findings indicate that all the cryptocurrency definitions quoted in this study demonstrate that bitcoin together with other cryptocurrencies have ceased to be a niche phenomenon as at the time of the definitions being published and that in no way can the novel trend already marked across the world be ignored by pretending it simply does not exist. Originality/value: This article intends to cover the gap observable in the current scientific discourse in the relations between the notions of classic money and digital currencies.

Suggested Citation

  • Robert Poskart, 2020. "Cryptocurrencies in the Light of Money Definitions," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 905-915.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:special2:p:905-915
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    References listed on IDEAS

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    1. Amy Ellen Schwartz, 2004. "Introduction," Chapters, in: Amy Ellen Schwartz (ed.), City Taxes, City Spending, chapter 1, Edward Elgar Publishing.
    2. A. C. Pigou, 1917. "The Value of Money," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 32(1), pages 38-65.
    3. Hicks, J. R., 1979. "Critical Essays in Monetary Theory," OUP Catalogue, Oxford University Press, number 9780198284239.
    4. Sarah Rotman, 2014. "Bitcoin Versus Electronic Money," World Bank Publications - Reports 18418, The World Bank Group.
    5. Milton Friedman & Anna Jacobson Schwartz, 1970. "Part One: Definition of Money, Introduction," NBER Chapters, in: Monetary Statistics of the United States: Estimates, Sources, Methods, pages 89-92, National Bureau of Economic Research, Inc.
    6. Milton Friedman & Anna Jacobson Schwartz, 1970. "Monetary Statistics of the United States: Estimates, Sources, Methods," NBER Books, National Bureau of Economic Research, Inc, number frie70-1.
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    More about this item

    Keywords

    Cryptocurrency; money definitions; bitcoin.;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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