Bitcoin: Annotated Bibliography

Bjerg, O. (2015). How is Bitcoin Money? Theory, Culture & Society, 33(1), 53 - 72.

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The article captures an empirical inquiry on Bitcoin viability as a peer-to-peer payment using the electronic platform and its independence from the conventional currency. It offers philosophical investigation on the viability of Bitcoin currency using the Zizek model on symbolic, imaginary and real constructs. The study assessment uses fiat, credit, and commodity theories to determine its suitability as a medium of exchange and storage of value. The analysis showed Bitcoin being commodity money without material attachment and credit money without liability. As a student of the Copenhagen Business School, Bjerg found Bitcoin posing ideological challenges to traditional forms of money. The study demonstrates exposure to risk, volatility, and exploitation of traditional economic institutions, making it a relevant case to investigate its viability. The examinations of implications of Bitcoin is relevant to the study to understand its viability as an alternative to conventional money system.

Cheah, E.-T., & Fry, J. (2015, May). Speculative bubbles in Bitcoin markets? An empirical investigation into the fundamental value of Bitcoin. Economic Letters, 130(29), 32-36.

The article captures findings of the empirical investigation of Bitcoin markets conducted by Fry and Cheah (2015). The authors based in Sheffield University Management School, questions the viability of Bitcoin market then estimated at $3.3 billion. They argued the presence of the considerable speculative element in the Bitcoin pricing, thereby making its markets prone to bubbles. As with other speculative investment vehicles, they find the rushed acceptance of Bitcoins risky to the market. Their empirical examination shows rapidly increasing adoption of Bitcoin as the alternative currency. They predict such as subjecting the Bitcoin markets purely to speculative purposes. The economic and econometric modeling supports the hypothesis of their study indicating potential volatility of Bitcoin prices like other investment assets. The demonstration of speculative bubbles in Bitcoin presents relevant empirical evidence to assess the contribution of virtual currency to overcome the shortcomings of conventional money. It presents an opportunity to fill the research gap on the usefulness of Bitcoin as the alternative currency or purely as an investment platform.

HauboDyhrberg, A. (2016). Bitcoin, gold and the dollar - A GARCH volatility analysis. Finance Research Letters, 16(8), 85-92.

The article captures exploration by HaudoDyhrberg (2016) on the capabilities of the financial asset when applying GARCH models. The study reveals similarity in gold and dollar capabilities to hedge. The choice of the model showed asymmetric exploration discovered advantages when using Bitcoin as the medium of exchange. Furthermore, the article showed useful links in the Bitcoin application in risk management befitting risk-averse investors. The study forms part of the author's output as a doctoral student at the University of Sydney. Besides, the author's experience as the economic consultant and business developer in consumer finance proved important to explore Bitcoin capabilities as a financial asset using GARCH Models. The article places Bitcoin as a relevant addition to portfolio management and financial products. Its contribution is relevant to the research topic with the findings placing Bitcoin between the dollar and gold when assessed on basis of pure exchange medium and store of value.

Pieters, G., & Vivanco, S. (2017, June ). Financial regulations and price inconsistencies across Bitcoin markets. Information Economics and Policy, 39(2), 1-14.

Pieters and Vivanco (2017) observe inconsistencies in Bitcoin prices despite the uniformity in its usage. The articles show Bitcoin prices contradict the law of one price with the unit valuation varying with the market. Although an identical good, they predict the consistency emerges of the failure by the market to harbor similar characteristics. Discrepancies in the law of one price emerge from the multiplicity of market regulations, particularly with loose monitoring leading to large price deviations. Markets where customer identification is hardly a requirement to fund account yields opportunities for price inconsistencies. The authors use their graduate school experience from Trinity University in Texas to evaluate eleven different markets that account for twenty-six percent of global volume in Bitcoin transactions. The results indicated markets lacking tighter regulations such as customer identification have market prices deviating from the controlled market. The findings have relevancy to towards evaluating the implication of price on Bitcoin usage across the global markets.

Polasik, M., Piotrowska, A., Wisniewski, T. P., Kotkowski, R., & Lightfoot, G. (2014). Price Fluctuations and the Use of Bitcoin: An Empirical Inquiry. Leicester School of Management, 1-59.

The article captures an empirical inquiry on the implications of Bitcoin viability on electronic commerce. The study adopted the network externality theory to investigate the impact of Bitcoin popularity to investors. The article reports showed merchants adopting Bitcoins platform as alternative currency were speculative. The results indicate the market determinants influential to the price variation though convenience to international and online transactions that require no intermediaries. The simultaneous exploration by the authors drawn from Leicester School of Management as a payment system and enabler of investment is a relevant input to the research on the viability of Bitcoin as a compliment or substitute to the conventional payment system. The presence of mature users within the investors' community has hardly resolved the volatility element in Bitcoins. The findings signal need for further research on factors driving the fluctuations. Such circumstances make the case to explore the viability of Bitcoins with cryptocurrencies yet to obtain stability to substitute conventional money system.

Richter, C., Kraus, S., & Bouncken, R. B. (2015). Virtual Currencies like Bitcoin as a Paradigm Shift in the Field of Transactions. International Business & Economics Research Journal, 14(4), 575 - 586.

Richet, Kraus, and Bouncken (2015) investigate the influence of virtual currencies to overcome the deficiency of conventional banking transactions evident in declining interest rates, the uncertainty of exchange rates and capital loss during the crisis. The study compares the beneficial input of virtual currency against conventional money. They found security threat, system collapse, money laundering, limited users, fluctuation of value and online cybercrime as challenges for the virtual currency. The occurrence of such shortcomings would affirm the predicted short product lifecycles, thereby making it challenging to compete with conventional banking market. They noted faster transactions, sustainability, non-existence inflations, toll-free and lower transfer fees stimulating widespread usage of Bitcoin. The wide reference made to previous research, online and offline documentation gives the authors a breadth to evaluate the viability of virtual currency. The study findings are relevant to my research with authors predicting sustained transparency in Bitcoin use will change the global business transactions.

Roth, N. (2015). An Architectural Assessment of Bitcoin Using the Systems Modeling Language. Procedia Computer Science Direct, 44, 527- 536.

Roth (2015) evaluates Bitcoin controversy and mystery by making cont...