Cryptocurrencies: market analysis and perspectives
The papers in this special issue focus on the emerging phenomenon of cryptocurrencies. Cryptocurrencies are digital financial assets, for which ownership and transfers of ownership are guaranteed by a cryptographic decentralized technology. The rise of cryptocurrencies’ value on the market and the growing popularity around the world open a number of challenges and concerns for business and industrial economics. Using the lenses of both neoclassical and behavioral theories, this introductory article discusses the main trends in the academic research related to cryptocurrencies and highlights the contributions of the selected works to the literature. A particular emphasis is on socio-economic, misconduct and sustainability issues. We posit that cryptocurrencies may perform some useful functions and add economic value, but there are reasons to favor the regulation of the market. While this would go against the original libertarian rationale behind cryptocurrencies, it appears a necessary step to improve social welfare.
XVI International Symposium "Problems of Redundancy in Information and Control Systems" is the conference that covers a wide area of aspects of information and communication systems. The main goal of the Symposium foundation is the reinforcement of cooperation between the representatives of various scientific schools, a possibility for the participants to get awareness of the latest scientific and technical achievements and sharing their experience with colleagues. The covered topics include but not limited to information and coding theory, telecommunication protocols, internet of things systems, machine learning, data security, blockchain.
The review discusses the political-economic aspects of the concept of distributed capitalism allowed for by blockchain technology. As opposed to the first era of the Internet, where the industry of financial and information services was dominated by intermediaries, the blockchain era is characterized by development of a new institution of trust; disruption of financial intermediation; economic inclusion of hundreds of millions of citizens in developing countries; an increase in competition and a decrease in inequality. The paper focuses on the content of key political-economic categories being redefined in the blockchain era. First, labor value gives way to creative value which is manifesting itself in cryptocurrencies. Second, exploitation of workers is replaced by digital discrimination. The blockchain revolution is a solution to the problem of discrimination against intellectual property creators, who have to hand over a large part of the value created to intermediaries. Third, capitalism characterized by information monopoly gives place to free competition based on rivalry between cryptocurrencies. Fourth, class struggle is substituted by confrontation between agents of information monopoly system and those of distributed economy. The author considers the main opposition to distributed capitalism to stem from the feudal financial system which loses ground under new conditions, where economic agents may use alternative currencies and interact directly with one other without risk and high transaction costs.
This book constitutes the contributions presented at the Blockchain Forum and the Central and Eastern Europe Forum (CEE Forum) held at the 17th International Conference on Business Process Management, BPM 2019, which took place in Vienna, Austria, in September 2019.
The Blockchain Forum deals with the use of blockchain for collaborative information systems. Conceptual, technical and application-oriented contributions are pursued within the scope of this theme. The Blockchain Forum received a total of 31 submissions; 10 full and 1 short paper were accepted for publication in this book.
The objective of the CEE Forum is to foster discussion for BPM academics from Central and Eastern Europe to disseminate their research, compare results and share experiences. For the CEE Forum 16 submissions were received and 6 full and 2 short papers were accepted for publication.
The book also contains one invited talk in full-paper length and 6 poster papers from the CEE Forum.
High rates of growth of the ICO market and its excess returns stipulate a significant interest of investors to projects which use initial token allocation (ICO) for attracting investments. This work takes into account the fact that even a potentially profitable project may fail to collect the required amount of money and to start placing tokens on the stock exchange. We are speaking about success of an ICO-campaign for fund raising. In order to estimate the influence of factors and check the suggested research hypotheses, logistic regression was used. The selection included 672 projects. As a dependent variable, the proportion of the amount collected in the ICO process from the required value is selected. Depending on the tested hypothesis the influencing variables took into account the presence of a pre-sale stage and the bounty program and also the price of the token, the upper limit of fund raising, the duration of the ICO-campaign and the number of team members. The work results allow token emitters to substantiate managing the success of the ICO-campaign of the project and the investors to see whether it deserves their attention. Besides, the obtained materials can be useful for specialists in forming the legal framework of token transactions.
The paper analyzes legal issues associated with the application of existing contract law provisions to so-called Smart contracts, defined in the paper as ‘agreements existing in the form of software code implemented on the Blockchain platform, which ensures the autonomy and self-executive nature of Smart contract terms based on a predetermined set of factors’. The paper consists of several sections. In the second section, the paper outlines the peculiarities of Blockchain technology, as currently implemented in Bitcoin cryptocurrency, which forms the core of Smart contracts. In the third section, the main characteristic features of Smart contracts are described. Finally, the paper outlines key tensions between classic contract law and Smart contracts. The concluding section sets the core question for analysis of the perspectives of implementation of this technology by governments: ‘How to align the powers of the government with Blockchain if there is no central authority but only distributed technologies’. The author suggests two solutions, neither of which is optimal: (1) providing the state authorities with the status of a Superuser with extra powers; and (2) relying on traditional remedies and enforcement practices, by pursuing specific individuals – parties to a Smart contract – in offline mode.
The paper analyzes legal issues associated with Smart contracts, i.e. agreements existing in the form of software code implemented on the Blockchain platform, which ensures autonomy and self-executive nature of Smart contract terms based on predetermined set of factors. Based on cryptocurrency Bitcoin example, the paper outlines peculiarities of Blockchain technology, which is the core of Smart contracts. Then the tensions between classic contract law and Smart contracts are outlined (inapplicability of concepts of “obligation”, “responsibility”, “non-performance or improper performance”, etc.) and certain possible consequences of wide-scale use of Smart contracts in legal practice
The article examines in detail the method of design of an own cryptocurrency with a description of its parameters. At the output, a program is obtained, with the help of which it is possible to mining its cryptocurrency and exchange it among users.
The article analyzes the possibility of using cryptocurrencies in the Russian Federation. It is shown that the prospects for the use of cryptocurrencies in Russia are unfavorable due to a number of limitations. An analysis of these constraints has been performed. A review of the possibilities of using cryptocurrencies in Russia under international sanctions is given.
In the conditions of accelerated globalization and high speed of technological progress, it becomes vitally important for investors, banks and other participants of the financial market to use innovations in their kind of activity to increase profits. Otherwise, they can be defeated before their competitors. In view of the above situation, the author decided to carry out a research paper on the topic "Bitcoin as a breakthrough innovation of the 21st century". The article is devoted to the study of the Crypto-currency as a derivative of the technology from the "Blochane" innovation. The main objective of the study is to define the investment appeal of the crypto currency both in general and in particular - Bitcoin. The subject of the study is Bitcoin, and the object of research is the technology of P2P data exchange. The main method of studying Bitcoin is the historical analysis, on the basis of which the cause-effect relationships affecting the Bitcoin exchange rate to the dollar were searched. Also, a quantum-economic analysis was made showing the state of the subject of research to date. Moreover, it was presented a comparison of the fiat currencies and the first crypto currency. The author also analyzed the dynamics of changes in the level of interest of the population in crypto currency Bitcoin and the dynamics of the change in the rate of Bitcoin to the dollar. Based on the analysis done, the author came to a number of conclusions, the main ones of which are: Bitcoin is a test model of a new concept of electronic money transfer; In the near future it is necessary to expect the emergence of national crypto-currencies; The potential of technology "Blokchayne" can radically change the accounting and tax reporting of legal entities.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.