Recent developments have made private digital currency possible. Any digital money must prevent users from spending their balances more than once, easier said than done with purely digital currencies. Current and recent digital currencies use peer-to peer networks and open-source software to stop double spending. This paper explains how the use of these technologies can be equilibrium strategies. This paper also discusses the rise of 24/7 trading on a computerized market in Bitcoin, a remarkable innovation in financial markets.
| gerald-dwyer-economicsdigitalcurrency.pdf |
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