Blockchain and Cryptocurrencies

Electronic money isn't a recent phenomenon. Internet trading has expanded the use of emerging technology, increasing the need for modern online payment methods. What is new is electronic payment in retail and the use of the Internet as a modern monetary market. Today, money is ready for details on the microprocessor or the database. Since its launch, the exponential growth of Bitcoin and other digital currencies has created sparkling interest in governments, academics, investors, traders, and portfolio managers. Bitcoin is based on three technologies: The Internet, encryption techniques, and modern blockchain technologies. Unlike other innovations, the Bitcoin revolution was both a technical and a monetary revolution. It has completely transformed the monetary landscape, and it seems that its discovery has opened a Pandora's box, the consequence of which cannot be underestimated or expected. Since its inception in 2009, the Bitcoin project has had many critics and, like any successful project, its number has gradually increased.This book is aimed to provide state of the art research and studies from leading experts in blockchain and cryptocurrencies. The opening chapter provides an analysis of the use of cryptocurrencies in general, especially Bitcoin as the technology adoption in the presence of network externalities. Further, the chapter explores financial privacy which is a sensitive issue in using digital currency (or cryptocurrency) and discuss about private choices versus political rules. Second chapter focuses on research results that cover special features of blockchain technology functions and emission of cryptocurrency, studied practices of legal regulations of cryptocurrency in various countries, considered positions of different states in defining legal nature of cryptocurrency and made relevant conclusions and suggestions. Further, the book sheds light on the origin of the value of cryptocurrencies; on the market efficiency and liquidity of high-frequency cryptocurrencies in a bull and bear market; contagion effect in cryptocurrency market; audit chain; and cryptocurrency returns. Moreover, the book investigates the level of liquidity of digital currencies during the very intense bearish phase in their markets. Finally, the book presents a systematic survey on whether the pricing behavior of cryptocurrencies is predictable.