2014/03/24 by Stefan Bornholdt, Bornholdt, Stefan, Kim Sneppen +1
Computer Science · Economics, Econometrics and Finance · Physics and Astronomy · #Blockchain Technology Applications and Security #Complex Systems and Time Series Analysis #Computers and Society (cs.CY) #Economic theories and models #FOS: Computer and information sciences #FOS: Economics and business #FOS: Physical sciences #General Finance (q-fin.GN) #Monetary Policy and Economic Impact #Physics and Society (physics.soc-ph) #cs.CY #physics.soc-ph #q-fin.GN
paper · pdf · doi:10.48550/arxiv.1403.6378
5 pages, 5 figures
arxiv created 2014/03/24 · openalex publication_date 2014/03/24 · arxiv updated 2014/03/26 · openalex created_date 2021/02/01 · openalex updated_date 2026/07/28
Bitcoins have emerged as a possible competitor to usual currencies, but other crypto-currencies have likewise appeared as competitors to the Bitcoin currency. The expanding market of crypto-currencies now involves capital equivalent to 1010 US Dollars, providing academia with an unusual opportunity to study the emergence of value. Here we show that the Bitcoin currency in itself is not special, but may rather be understood as the contemporary dominating crypto-currency that may well be replaced by other currencies. We suggest that perception of value in a social system is generated by a voter-like dynamics, where fashions form and disperse even in the case where information is only exchanged on a pairwise basis between agents.