Beyond Bitcoin: The Economics of Digital Currencies

Digital currencies are a fairly new phenomenon brought about by the spectacular rise of the internet. While Bitcoin is the most famous, there are numerous other digital currencies--from Amazon Coin to Zetacoin. Beyond Bitcoin explores the economic forces underlying the design of their features and their potential. Halaburda and Sarvary argue that digital currencies are best understood by considering the economic incentives driving their creators and users. The authors present a framework that will allow systemic analysis of this dynamic environment and support further discussion of the design of digital currencies' features and the competition in the market.

Hanna Halaburda shares her time between New York University, USA, and the Bank of Canada. Previously, she was on the faculty at Harvard Business School, USA, and a visiting scholar at Columbia University, USA. Halaburda’s research specializes in the economics of digital currencies, platform competition, and the impact of technology on firms’ strategy.

Miklos Sarvary is Professor at Columbia Business School, USA, where he serves as Faculty Director of the Media and Technology Program. Previously, he was on the faculty at Stanford University, USA; Harvard University, USA; and INSEAD. His research has focused on information and news markets, social network competition and, more recently, online advertising effectiveness.