Cryptocurrencies: a survey on acceptance, governance and market dynamics

• Main Authors: Hairudin, Aiman, Sifat, Imtiaz Mohammad, Mohamad, Azhar, Yusof, Yusniliyana
• Format: Article
• Language: English; English; English
• Published: John Wiley and Sons Ltd 2020
• Subjects: HG221 Bitcoin/Cryptocurrency/Block Chain
• Online Access: http://irep.iium.edu.my/101439/1/101439_Cryptocurrencies%20a%20survey%20on%20acceptance.pdf; http://irep.iium.edu.my/101439/2/101439_Cryptocurrencies%20a%20survey%20on%20acceptance_SCOPUS.pdf; http://irep.iium.edu.my/101439/3/101439_Cryptocurrencies%20a%20survey%20on%20acceptance_WoS.pdf; http://irep.iium.edu.my/101439/; https://onlinelibrary.wiley.com/doi/10.1002/ijfe.2392
• Institution: Universiti Islam Antarabangsa Malaysia

This paper briefly overviews several challenging dimensions pertaining to cryptocurrencies with respect to their valuation, legitimacy, design, consensual acceptance and market-based stylized facts with a view to understanding whether this new asset class indeed has the potential to become an alternative, or a replacement, to traditional fiat currencies. Our survey indicates that public embrace of cryptocurrencies continues to lag as the masses currently show reluctance in embracing cryptocurrencies as a complement, let alone a substitute to fiat counterparts. Governments have also successfully defended their sovereignty in preserving legal tender status, structural seigniorage and exclusivity. Market-based studies hint at consistent inefficiencies across the spectrum. Furthermore, whether fundamental and mining factors determine cryptocurrencies' values remain unsettled. The most promising areas of research for crypto-financial intelligentsia would be delving into establishing trial runs for central bank-backed cryptocurrencies. In addition, we highlight that several methodological and data-based obstacles remain in assessing the link between cryptocurrencies and their traditional rivals. This avenue remains a fertile ground for potential future research.