6533b7ddfe1ef96bd1275137

RESEARCH PRODUCT

Intrinsic value in crypto currencies

Fernando García-monleónIgnacio Danvila-del-valleIgnacio Danvila-del-valleFrancisco Lara

subject

CryptocurrencyFinancial economics020209 energy05 social sciences02 engineering and technologyIntrinsic value (finance)CurrencyManagement of Technology and InnovationPhenomenon0502 economics and business0202 electrical engineering electronic engineering information engineeringEconomicsBusiness and International ManagementVolatility (finance)050203 business & managementApplied PsychologyValuation (finance)

description

Abstract Over the last years, cryptocurrencies have acquired a growing social and economic interest. The most representative features of this new phenomenon are strong price increases and high volatility. The investigations developed in this field are not excessively numerous nor unanimous. Some researches consider this phenomenon to be a bubble, since they don't agree that the price pattern of the cryptocurrencies is justified or explained by their intrinsic value. The present article aims to provide a theoretical framework for the assessment of these new realities embodied by cryptocurrencies. We have created a model which differentiates two types of cryptocurrencies: the cryptocurrencies meant to fund a specific project, and the cryptocurrencies designed for general or non-specific uses. We will also make a distinction between block chain networks designed to work only with cryptocurrencies from those which admit other tasks. Our model establishes the difference between the value of the currency and that of the network. The result of this research is a theoretical valuation model based on three fundamental categories of cryptocurrencies by purpose or finality.

yearjournalcountryeditionlanguage
2021-01-01Technological Forecasting and Social Change
https://doi.org/10.1016/j.techfore.2020.120393