Currency token and coins. Payment function and store of value: potential of cryptocurrencies
by Prof. Dr. Torsten Dennin (BIFID e.V.)
and Esther Hanzsch.
After the spectacular price increase of the Bitcoin in 2017, the following crash and the subsequent “crypto winter”, during which many blockchain projects had to fight for their survival, a new chapter has now opened in the crypto cosmos: We are on the verge of mass adaptation.
The corona pandemic is giving digitalization a significant boost and has led to increased acceptance of the digital world among private individuals, companies, and public institutions. For example, major technology companies such as MicroStrategy and Paypal are opening up to the cryptocurrency Bitcoin.
In addition to its function as a means of payment, however, another factor has now become much more important: the function of storing value. This is because the measures taken to limit the negative economic impact of the corona
pandemic have sparked a heated discussion about the stability of the monetary system and the reliance on money as a
store of value. This elaboration highlights the advantages and disadvantages of cryptocurrencies as stores of value
compared to traditional stores of value such as money, real estate, gold, and securities, and shows how cryptocurrency is emerging as an asset type.
For a closer look at the study, please use this link.