An analysis of the acquisition of a monetary function by cryptocurrency using a multi-agent simulation model

Kyohei Shibano () and Gento Mogi
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Kyohei Shibano: The University of Tokyo
Gento Mogi: The University of Tokyo

Financial Innovation, 2022, vol. 8, issue 1, 1-30

Abstract: Abstract Many types of cryptocurrencies, which predominantly utilize blockchain technology, have emerged worldwide. Several issuers plan to circulate their original cryptocurrencies for monetary use. This study investigates whether issuers can stimulate cryptocurrencies to attain a monetary function. We use a multi-agent model, referred to as the Yasutomi model, which simulates the emergence of money. We analyze two scenarios that may result from the actions taken by the issuer. These scenarios focus on increases in the number of stores that accept cryptocurrency payments and situations whereby the cryptocurrency issuer designs the cryptocurrency to be attractive to people and conducts an airdrop. We find that a cryptocurrency can attain a monetary function in two cases. One such case occurs when 20% of all agents accept the cryptocurrency for payment and 50% of the agents are aware of this fact. The second case occurs when the issuer continuously airdrops a cryptocurrency to a specific person while maintaining the total volume of the cryptocurrency within a range that prevents it from losing its attractiveness.

Keywords: Cryptocurrency; Blockchain; Social acceptance of cryptocurrency; Emergence of currency (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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DOI: 10.1186/s40854-022-00389-8

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