Valuation of Cryptocurrency Without Intrinsic Value: A Promise of Future Payment System and Implications to De-dollarization

Garrison Hongyu Song ()
Additional contact information
Garrison Hongyu Song: SUNY

Eastern Economic Journal, 2023, vol. 49, issue 2, No 7, 248 pages

Abstract: Abstract A random search-based model is proposed to study the valuation of cryptocurrency. We provide a unique approach to valuing cryptocurrency according to people’s acceptance probability of cryptocurrency. Although cryptocurrency is generally considered without intrinsic value, it can have value in an exchange economy. Cryptocurrency has shown huge potential as a future payment system to replace the US dollar’s position in international trade, our model, however, indicates that the value of cryptocurrency is fundamentally unstable, and thus, it has a long way to go before fulfilling its mission.

Keywords: Cryptocurrency; Bitcoin; Valuation; De-dollarization; Search theory (search for similar items in EconPapers)
JEL-codes: E42 E51 F30 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41302-023-00237-2 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:easeco:v:49:y:2023:i:2:d:10.1057_s41302-023-00237-2

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/41302

DOI: 10.1057/s41302-023-00237-2

Access Statistics for this article

Eastern Economic Journal is currently edited by Allan Zebedee and Cynthia Bansak

More articles in Eastern Economic Journal from Palgrave Macmillan, Eastern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().