Domains and limitations of the utilization of cryptocurrencies and blockchain technology in international business and financial markets

Authors

DOI:

https://doi.org/10.7251/ACE1829079R

Keywords:

blockchain, financial markets, cryptocurrencies, digital currencies

Abstract

The subject of this paper is to analyse utilization of cryptocurrencies in international business. The objectives of the research are to provide the scientific and professional public, researchers and practitioners with an overview of current research on blockchain technology in the economy and to determine the impact of the wider use of cryptocurrencies in international business and their impact on the future of financial markets. The research was carried out by using the method of description, literature analysis and research conducted. The selected examples present the possibility for earning, buying and storing cryptocurrencies, paying with crypto-money and investing in them. The research will offer an answer to the research question “What are the advantages and disadvantages of using cryptocurrencies in international payments and what are the security measures of using cryptocurrencies in the future?” In the answer, this paper will present the direction in which the use of crypts will develop in the future. The contribution of the paper is reflected in the presentation of the scope and restrictions on the use of cryptocurrencies in international business, banking and financial markets. Results have shown that blockchain technology has a bright perspective, even though it would not be known today if bitcoin had not gained in popularity. The conclusions suggest that, as long as the transaction costs are lower than the costs of payment transactions, the rational behaviour of legal and natural persons requires encouraging the use of cryptocurrencies in order to reduce the costs of transactions and to overcome the existence of an intermediary.

Downloads

Download data is not yet available.

References

Arsov, A. (2017). Periodic Table of Cryptocurrencies: Blockchain Categorization. SSRN Electronic Journal. Доступно на: http://dx.doi.org/10.2139/ssrn.3095169

Bitcoin. (2018). Price, Market Cap, Charts, News. Доступно на https://www.coindesk.com/price/

Bliss, R. R. & Steigerwald, R. S. (2006). Derivatives Clearing and Settlement: A Comparison of Central Counterparties and Alternative Structures. Economic Perspectives, Vol. 30, No. 4 Доступно на: https://ssrn.com/abstract=948769

Buterin, Ribarić & Savić. (2015). Bitcoin–nova globalna valuta, investicijska prilika ili nešto treće?. Zbornik Veleučilišta u Rijeci, 3(1), 145-158. Доступно на: https://hrcak.srce.hr/139715

Cheah, E.-T. and J. Fry (2015). Speculative bubbles in bitcoin markets? an empirical investigation into the fundamental value of bitcoin. Economics Letters 130, 32–36. Доступно на: https://doi.org/10.1016/j.econlet.2015.02.029

Christidis, K., & Devetsikiotis, M. (2016). Blockchains and smart contracts for the internet of things. IEEE Access, 4, 2292-2303. DOI: 10.1109/ACCESS.2016.2566339

Corbet, S., Lucey, B., Peat, M., & Vigne, S. (2018). Bitcoin Futures—What use are they? Economics Letters. DOI: 10.1016/j.econlet.2018.07.031

Demir, E., G. Gozgor, C. K. M. Lau, and S. A. Vigne (2018). Does economic policy uncertainty predict the Bitcoin returns? An empirical investigation. Finance Research Letters Доступно на https://doi.org/10.1016/j.frl.2018.01.005

Duffie, D., Gârleanu, N., & Pedersen, L. H. (2005). Over‐the‐Counter Markets. Econometrica, 73(6), 1815-1847.

European Central Bank. (2015). Virtual currency schemes. Доступно на: https://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemesen.pdf

Friedman, M. & Schwartz, A. J. (1986). Has government any role in money?. Journal of Monetary Economics, 17(1), 37-62. Доступно на: https://www.sciencedirect.com/science/article/pii/030439328690005X?via%3Dihub

Harwick, Cameron, Cryptocurrency and the Problem of Intermediation (May 31, 2015). Independent Review, Vol. 20, No. 4, Spring 2016. Доступно на: http://dx.doi.org/10.2139/ssrn.2523771

Hayes, A. S. (2017). Cryptocurrency value formation: An empirical study leading to a cost of production model for valuing bitcoin. Telematics and Informatics, 34(7), 1308-1321. Доступно на: 10.1016/j.tele.2016.05.005

Kewell, B., & Michael Ward, P. (2017). Blockchain futures: With or without Bitcoin?. Strategic Change, 26(5), 491-498. Доступно на: https://doi.org/10.1002/jsc.2149

Laabs, M. & Đukanović, S. (2018). Blockchain in Industrie 4.0: Beyond cryptocurrency. it - Information Technology, 60(3), pp. 143-153. Доступно на doi: 10.1515/itit-2018-0011

Larios-Hernández, G. J. (2017). Blockchain entrepreneurship opportunity in the practices of the unbanked. Business Horizons, 60(6), 865–874. doi: 10.1016/j.bushor.2017.07.012

Liu, J., Li, W., Karame, G. O., & Asokan, N. (2018) Toward Fairness of Cryptocurrency Payments. IEEE Security & Privacy, 16(3), 81-89. DOI: 10.1109/MSP.2018.2701163

Liu, Y., & Tsyvinski, A. (2018). Risks and returns of cryptocurrency (No. w24877). National Bureau of Economic Research. Доступно на https://www.nber.org/papers/w24877.pdf

Luther, W. J. (2016). Cryptocurrencies, network effects, and switching costs. Contemporary Economic Policy, 34(3), 553-571. Доступно на: https://doi.org/10.1111/coep.12151

Luther, W. J., & Salter, A. W. (2017). Bitcoin and the bailout. The Quarterly Review of Economics and Finance, 66, 50-56. Доступно на: https://doi.org/10.1016/j.qref.2017.01.009

Maftei, L. (2014). Bitcoin-Between Legal and Informal. CES Working Papers, 6(3), 53. Доступно на: http://ceswp.uaic.ro/articles/CESWP2014_VI3_MAF.pdf

Manski, S. (2017). Building the blockchain world: Technological commonwealth or just more of the same?. Strategic Change, 26(5), 511-522. DOI: 10.1002/jsc.2151

Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. Доступно на: https://bitcoin.org/bitcoin.pdf

Qin, R., Yuan, Y., & Wang, F. Y. (2018). Research on the Selection Strategies of Blockchain Mining Pools. IEEE Transactions on Computational Social Systems, (99), 1-10.

Radivojac, G., & Grujić, M. (2018). Fenomen kriptovaluta - spoj finansija i tehnologija na finansijskim tržištima. Banja Luka: Financing, 1(1), 15–24 DOI: 10.7251/FIN1801015G

Singh, S. & Bahi, S. (2015). Behavioural Finance. Vikas Publishing House.

Tschorsch, F., Scheuermann, B. (2016). Bitcoin and beyond: A technical survey on decentralized digital currencies. IEEE Communications Surveys & Tutorials, 18(3), 2084-2123.

Turudić, D. A., Milić, J. & Štulina, K. (2017). Korištenje kriptovaluta u međunarodnom poslovanju. Zbornik sveučilišta Libertas, 1-2(1-2), 191-210. Доступно на: https://hrcak.srce.hr/191294

Van de Bunt, H. (2008). The role of hawala bankers in the transfer of proceeds from organised crime. In Organized crime: Culture, markets and policies (pp. 113-126). Springer, New York, NY. Доступно на: https://link.springer.com/chapter/10.1007/978-0-387-74733-0_9

White, L. H. (2015). The market for cryptocurrencies. Доступно на: Cato Journal, 383- 402. https://object.cato.org/sites/cato.org/files/serials/files/cato-journal/2015/5/cjv35n2-13.pdf

Wray, L. R. (2002). Modern money. In What is Money? (pp. 52-76). Routledge. Доступно на http://dx.doi.org/10.2139/ssrn.69409

Yermack, D. (2015). Is Bitcoin a real currency? An economic appraisal. In Handbook of digital currency (pp. 31-43). Доступно на: http://www.nber.org/papers/w19747.pdf

Yli-Huumo, J., Ko, D., Choi, S., Park, S., & Smolander, K. (2016). Where is current research on blockchain technology?—a systematic review. PloS one, 11(10), e0163477. Доступно на: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0163477

Yuan, Y., & Wang, F. Y. (2018). Blockchain and cryptocurrencies: Model, techniques, and applications. IEEE Transactions on Systems, Man, and Cybernetics: Systems, 48(9), 1421-1428. Доступно на: https://ieeexplore.ieee.org/document/8419306

Downloads

Published

2018-12-31

How to Cite

Radivojac, G., & Grujić, M. (2018). Domains and limitations of the utilization of cryptocurrencies and blockchain technology in international business and financial markets. Acta Economica, 16(29), 79–102. https://doi.org/10.7251/ACE1829079R

Issue

Section

Review article