Intrinsic value in crypto currencies

Fernando García-Monleón, Ignacio Danvila-del-Valle and Francisco J. Lara

Technological Forecasting and Social Change, 2021, vol. 162, issue C

Abstract: Over the last years, cryptocurrencies have acquired a growing social and economic interest. The most representative features of this new phenomenon are strong price increases and high volatility. The investigations developed in this field are not excessively numerous nor unanimous. Some researches consider this phenomenon to be a bubble, since they don't agree that the price pattern of the cryptocurrencies is justified or explained by their intrinsic value. The present article aims to provide a theoretical framework for the assessment of these new realities embodied by cryptocurrencies. We have created a model which differentiates two types of cryptocurrencies: the cryptocurrencies meant to fund a specific project, and the cryptocurrencies designed for general or non-specific uses. We will also make a distinction between block chain networks designed to work only with cryptocurrencies from those which admit other tasks. Our model establishes the difference between the value of the currency and that of the network. The result of this research is a theoretical valuation model based on three fundamental categories of cryptocurrencies by purpose or finality.

Keywords: Block chain; Cryptocurrency; Valuation model; Intrinsic value (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:162:y:2021:i:c:s0040162520312191

DOI: 10.1016/j.techfore.2020.120393

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