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Cryptocurrencies: A survey on acceptance, governance and market dynamics

Author

Listed:
  • Aiman Hairudin
  • Imtiaz Mohammad Sifat
  • Azhar Mohamad
  • Yusniliyana Yusof

Abstract

This paper briefly overviews several challenging dimensions pertaining to cryptocurrencies with respect to their valuation, legitimacy, design, consensual acceptance and market‐based stylized facts with a view to understanding whether this new asset class indeed has the potential to become an alternative, or a replacement, to traditional fiat currencies. Our survey indicates that public embrace of cryptocurrencies continues to lag as the masses currently show reluctance in embracing cryptocurrencies as a complement, let alone a substitute to fiat counterparts. Governments have also successfully defended their sovereignty in preserving legal tender status, structural seigniorage and exclusivity. Market‐based studies hint at consistent inefficiencies across the spectrum. Furthermore, whether fundamental and mining factors determine cryptocurrencies' values remain unsettled. The most promising areas of research for crypto‐financial intelligentsia would be delving into establishing trial runs for central bank‐backed cryptocurrencies. In addition, we highlight that several methodological and data‐based obstacles remain in assessing the link between cryptocurrencies and their traditional rivals. This avenue remains a fertile ground for potential future research.

Suggested Citation

  • Aiman Hairudin & Imtiaz Mohammad Sifat & Azhar Mohamad & Yusniliyana Yusof, 2022. "Cryptocurrencies: A survey on acceptance, governance and market dynamics," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 4633-4659, October.
    • Handle: RePEc:wly:ijfiec:v:27:y:2022:i:4:p:4633-4659
    DOI: 10.1002/ijfe.2392
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    References listed on IDEAS

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    2. Ning Fu & Mingu Kang & Joongi Hong & Suntae Kim, 2024. "Enhanced Genetic-Algorithm-Driven Triple Barrier Labeling Method and Machine Learning Approach for Pair Trading Strategy in Cryptocurrency Markets," Mathematics, MDPI, vol. 12(5), pages 1-21, March.
    3. Ahmed, Mohamed Shaker & El-Masry, Ahmed A. & Al-Maghyereh, Aktham I. & Kumar, Satish, 2024. "Cryptocurrency volatility: A review, synthesis, and research agenda," Research in International Business and Finance, Elsevier, vol. 71(C).

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