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Recommended Download: Cryptocurrencies: looking beyond the hype. Free 24 page pdf (bis.org)
Cryptocurrencies: looking beyond the hype - 
BIS Annual Economic Report
  |  17 June 2018



Abstract

Hyun Song Shin (Economic Adviser and Head of Research) speaks about Chapter V of the Annual Economic Report 2018.

Cryptocurrencies' decentralised model of generating trust limits their potential to replace conventional money, the chapter argues.

Cryptocurrencies promise to replace trusted institutions with distributed ledger technology. Yet, looking beyond the hype, it is hard to identify a specific economic problem which they currently solve.

Transactions are slow and costly, prone to congestion, and cannot scale with demand. The decentralised consensus behind the technology is also fragile and consumes vast amounts of energy.

Still, distributed ledger technology could have promise in other applications. Policy responses need to prevent abuses while allowing further experimentation. Download the full free 24 page pdf report here: 
https://www.bis.org/publ/arpdf/ar2018e5.pdf
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    Francisco Gimeno - BC Analyst Download and read this report. Sober on the issue of cryptocurrencies, see yet more troubles than solutions. This is interesting as the issues stated are mainly energy usage, scalability and transactions costs, which are the issues cryptocurrency experts are working on now. Hoping next year a similar report from BIS will be more favourable.