Session Title: "The Disruption of Money and the Evaluation of Cryptocurrencies"
Coauthor: Timea Honeycutt, Graduate Assistant, University of North Carolina at Charlotte, USA
Watch the Session:

Session description: A substantial share of the future of money is in cryptocurrencies. This percentage will continue to grow exponentially in the near future and become an essential part of the global blockchain-based marketplace in the longer term. There will be different types of crypto money. They will ubiquitously be used in trade, risk-hedging, and lending. Before money was invented, there was the ledger. Early human beings traded or bartered what they did best with others and kept track of transactions on a ledger. Blockchain technology is just the current iteration of the ledger. Today’s money system is beyond antiquated. The only thing today that distinguishes a fiat currency, such as the US Dollar, from any other piece of paper is trust. This trust has been deeply eroded in recent years. Money transfer models, such as cheques, ACH, wire transfers, etc. have numerous weaknesses and, in many cases, fatal flaws. Major drawbacks in trust, security, transparency, privacy, and mediation currently exist. Cryptocurrencies can help overcome many of these drawbacks. Today, there are over 15,500 cryptocurrencies in existence. Most of them will not survive in the longer term. The ones that perform well on one or more components of our crypto-evaluation test will likely dominate various segments of the crypto market. The Erevelles crypto-evaluation model consists of four key components: (i) Monetary discipline, (ii) Chokepoints, (iii) Network trajectory, and (iv) Community effects. More specifically, the following four questions are part of our crypto-evaluation model: (i) Does the cryptocurrency have a rigid, rule-based monetary discipline? (ii) Does the cryptocurrency have a choke point, or is it democratically decentralized? (i.e., Is it beyond the control of national governments or individual manipulation?), (iii) Does it have a growing network trajectory? and (iv) Does it have focused and motivated community effects? Based on the performance of the cryptocurrency on our crypto-evaluation test, the cryptocurrency will play a role in one or more of the following native currency functions in the blockchain marketplace: (i) As a store of value, (ii) As a medium of exchange, (iii) As a trustworthy unit of account, and (iv) As a standard for deferred payments. The cryptocurrency ecosystem will thus consist of a variety of cryptocurrencies including, but not limited to, risk-hedging cryptocurrencies, Trade-focused cryptocurrencies, lending-focused cryptocurrencies, government-backed cryptocurrencies, fiat currency-backed cryptocurrencies, and fiat currency-pegged cryptocurrencies.

Bio:    Timea Honeycutt received her B.S. in Economics and recently an MBA from UNC Charlotte. Her research includes blockchain technology and cryptocurrencies. She has experience working for a non-profit organization in a marketing role. Timea enjoys yoga and long walks in nature.