Cryptocurrency Concepts, Technology, and Applications

Whether the source is more industry-based or academic research, there certainly appears to be a growing interest in the field of cryptocurrency. The New York Times had a cover story on March 24, 2022, titled "Time to Enter the Crypto Zone?," and they talked about institutional investors pouring billions into digital tokens, salaries being taken in Bitcoins, and even Bitcoin ATMs in grocery stores. Certainly, there have been ups and downs in crypto, but it has a kind of alluring presence that tempts one to include crypto as part of one’s portfolio. Those who are "prime crypto-curious" investors are usually familiar with the tech/pop culture and feel they want to diversify a bit in this fast-moving market. Even universities are beginning to offer more courses and create "Centers on Cryptocurrency." Some universities are even requiring their students who take a crypto course to pay the course tuition via cryptocurrency. In response to the growing interest and fascination about the crypto industry and cryptocurrency in general, Cryptocurrency Concepts, Technology, and Applications brings together many leading worldwide contributors to discuss a broad range of issues associated with cryptocurrency. The book covers a wide array of crypto-related topics, including: Blockchain NFTs Data analytics and AI Crypto crime Crypto industry and regulation Crypto and public choice Consumer confidence Bitcoin and other cryptocurrencies. Presenting various viewpoints on where the crypto industry is heading, this timely book points out both the advantages and limitations of this emerging field. It is an easy-to-read, yet comprehensive, overview of cryptocurrency in the U.S. and international markets. Cover Half Title Title Copyright Dedication Contents List of Figures and Tables Preface List of Contributors About the Editor Chapter 1: Cryptocurrency Industry: A Review of Current and Future Trends Different Cryptocurrencies: Timeline of Development Cryptocurrencies: Market Development Cryptocurrencies, Financial Markets, and Monetary Policies The Development of the Cryptocurrency Goods and Services Market and Factors Market The Development of the Cryptocurrency: Summary of Outlook References Chapter 2: Investor Attention in Cryptocurrency Markets Introduction Measures of Investor Attention Google Search Volume Other Direct Measures Investor Attention in Stock Markets Investor Attention in Cryptocurrency Markets Returns Volatility and Crash Risk Liquidity Concluding Remarks References Chapter 3: How Much to Invest, If Any, in Bitcoin? Introduction A Look at the Literature Portfolio Analysis and the Black-Litterman Model Data Results Additional Considerations Conclusion References Chapter 4: Global Central Bank Digital Currency Research and Developments: Implication for Cryptocurrency 4.1 Introduction 4.2 Conceptual Background 4.2.1 CBDC Definitions 4.2.2 Similarities and Differences between CBDCs and Cryptocurrencies 4.3 CBDC Research and Developments around the World 4.3.1 Recent CBDC Research in the Literature 4.3.2 CBDC Developments in Africa 4.3.3 CBDC Developments in Europe 4.3.4 CBDC Developments in the Region of the Americas 4.3.5 CBDC Developments in Asia 4.3.6 CBDC Developments in Oceania 4.3.7 Global Interest in Information about CBDC 4.4 CBDC Adoption: Implications for Cryptocurrency 4.5 Conclusion References Chapter 5: Blockchain Governance: To Govern, or Not to Govern? Theoretical Approaches to Blockchain Governance Micro-Level Governance Infrastructure Architecture Application Architecture Interoperability Meso-Level Governance Decision-Making Mechanism Incentive Mechanism Consensus Mechanism Macro-Level Governance Power Distribution Accountability Mechanism Control Mechanism Conclusion References Chapter 6: Cryptocurrency Crime Introduction Crypto-Enabled and Crypto-Dependent Crimes Characteristics of Cryptocurrencies That Facilitate Crime Types of Cryptocurrency Crimes Fraud Other Cybercrimes Cryptocurrency Mining Crimes Money Laundering Terrorism Financing Sanctions Evasion Tax Evasion Darknet Marketplaces Bribery and Corruption Cryptocurrency-Adjacent Crimes Crime Risks Associated with Specific Types of Cryptocurrency Technology DeFi Crime Risks NFT Crime Risks Conclusions References Chapter 7: Following the Virtual Money: Investigating Crypto-Based Money Laundering and Confiscating Virtual Assets The Crypto Bombshell See No Evil, Hear No Evil, Investigate No Evil Moving under the Radar Basic Elements That All Investigators Need to Know Analyzing the Blockchain How Heuristics Help Linking Clusters to the Real World The Regulation Dilemma How to Harmonize Regulations in a Borderless Industry International Standards in Practice Implementation—Patchy but Positive Law Enforcement: Staying One Step Ahead From 0 to 100 in Just a Few Years New Investigative Possibilities Sidebar: “Welcome to Video”: Taking Down the Biggest Child Abuse Website Cooperation Across Borders and with VASPs Hosted vs Unhosted Wallets Emerging Criminal Strategies Catching the Wave A Snapshot of Criminal Strategies Confiscation: Deterring Crypto-Enabled Crime Seeking the Key to the Crypto Treasure Crypto before the Court Chapter 8: Regulatory and Legal Issues in Cryptocurrencies Introduction Major Legal Concerns in Cryptocurrency Hacks and Thefts Frauds and Scams Money Laundering and Tax Evasion Terrorist Financing and Rogue Actors A Spectrum of Regulatory Responses International Harmonization Efforts Concluding Remarks References Chapter 9: Cryptocurrencies, Blockchain, and Public Choice Introduction Cryptocurrency, Blockchain, and Decentralized Autonomous Organizations (DAO) Smart Contracts Illustrative Case 1: Questions of Voting: Unanimity, Parties, Coalitions/Interest Groups Public Choice Issue 1: Unanimity Public Choice Issue 2: Parties and Vote-Trading Public Choice Issue 3: Special Interest Groups The Impact of Innovative Crypto-Linked Technology on Voting and Unanimity Rules Understanding Political Parties and Their Influence Illustrative Case 2: Questions of Law and Contracts Public Choice Smart Contracts and the Law Illustrative Case 3: Regulation and Governance Examples from Crypto Regulation Conclusion References Chapter 10: Bitcoin Is King I. Introduction II. Function III. Fit Lack of Banking High Inflation Transaction Costs Capital Controls IV. Founding Bootstrapping Money Leaderless Money From Founding to Now V. Layer Zero VI. Implications Policy-Making Journalism Research VII. Conclusion References Chapter 11: Cryptocurrency Options Strategy, Analysis, and Valuation Equity and Cryptocurrency Option Markets: Overview Uncovered (Naked) Option Trading Strategy Contracts Buying Call Options Buying Put Options Selling Call and Put Options Buying and Selling Straddles Covered Option Trading Strategy Contracts Protective Put Strategy Covered Call Strategy Collars Advanced Option Trading Strategies Bull Call Vertical Spreads Bear Put Vertical Spreads Bull Put Vertical Spreads Bear Call Vertical Spreads Option Valuation Methods Binomial Option Pricing Model: Single-Period Probability Method Binomial Option Pricing Model: Two-Period Probability Method Black-Scholes-Merton (BSM) Model Other Statistical Concepts 1. Compounding Using Exponential (e) 2. Natural Logarithm (ln) 3. Normal Probability Distribution (N) Put Call Parity Hedge Ratio (h) and Leverage (Borrowing) Methods: Using BOPM Summary Chapter 12: The Role of Blockchain and Smart Contracts in International Relations 12.1 Introduction 12.2 Models of International Relations 12.2.1 The Rational Actor Model 12.2.2 The Organizational Behavior Model 12.2.3 The Governmental Model 12.3 Conclusion References Glossary Index "Some of the hottest topics today involve cryptocurrency, and FinTech. With all these trends, businesses need to become better informed. This book provides an easy-to-read, yet comprehensive, view of cryptocurrency in the U.S. and international markets, as well as the key issues, technologies, applications, challenges, and trends"-- Provided by publisher