Cryptocurrencies and the Economy: A Review of Literature

Abstract

In October 2008, pseudonymous developer Satoshi Nakamoto published a report on cryptography describing the digital currency Bitcoin. It was the first currency capable of working without a central bank or administrator. Research on cryptocurrencies is important to our society because they are global currencies that affect us in many ways: taxes, stock market, retirement portfolios, business transactions, etc. If the currencies are “a bubble” as some skeptics say, the repercussions of the cryptocurrency market failing would be detrimental: Billions of dollars would be lost. However, if cryptocurrencies remain successful, in several years the currencies will fuel business transactions and micropayments. This capstone will review research on how the traditional financial systems operate and the implications cryptocurrencies have within this environment. Through literature reviews, I will research the factors driving cryptocurrency usage and also the potential drawbacks the monetary system has to offer. I will discuss the benefits, consequences, and potential implications cryptocurrencies have on society, technology, and the environment.