The Economics of Cryptocurrencies and Digital Money: A Monetary Framework with a Game Theory Approach (Palgrave Studies in Financial Services Technology)

Preface
Contents
Abbreviations
List of Figures
1 Introduction
	1.1 A Recent History
		1.1.1 Digital Information Transfer and Pure Credit
		1.1.2 The Crypto Downfall
	1.2 A Game Theoretic Approach
		1.2.1 Competitiveness, Exit, and Best Responses
		1.2.2 Other Incentives
	1.3 A Monetary Arena
		1.3.1 Evolving Digital Payments
		1.3.2 Physical Cash
	References
2 Blockchain, Decentralized Consensus, and Trust
	2.1 Blockchain and Decentralized Consensus
		2.1.1 Hashing and Proof-of-Work
		2.1.2 Time-Stamping
		2.1.3 Decentralized Consensus
		2.1.4 Miners and Pools
		2.1.5 Proof-of-Stake
	2.2 Trust
		2.2.1 No Questions Asked
		2.2.2 Safe Assets and Collateralization
		2.2.3 The Inherent Hierarchy of Money
		2.2.4 Bank Runs
		2.2.5 Trust
	Appendix: Chartalists and Metallists
	References
3 The Basic Mining Game
	3.1 Mining Games
	3.2 An Axiomatic Approach
	3.3 Best Responses
	3.4 Uniqueness of Nash Equilibrium
	3.5 Cost Competitiveness and Entry Thresholds
	3.6 The Connection Between X and Y
	3.7 Highlights
	References
4 Higher Level Models
	4.1 Instrumental Game Theory
	4.2 Vertical Integration: Sale and Operation of Specialized Hardware
		4.2.1 The Interpretation of the Selection Rule
	4.3 Investment in State-of-the-Art Hardware
	4.4 The Implications of Mining Pools
	4.5 Users, Miners, and Block Composition
		4.5.1 Game Form and Key Results
		4.5.2 Connection with the Basic Mining Game and the Linear Aggregator
		4.5.3 An Instrumental Model
	4.6 Overview
	4.7 Emergent Phenomena and Equilibrium Selection
		4.7.1 The Limits of Backward Induction
		4.7.2 Evolution and Coordination
	References
5 The Future Monetary System
	5.1 Digital Innovations and Evolving Institutions
	5.2 The Future Monetary System
		5.2.1 From Libra to Diem
	5.3 Stablecoins
		5.3.1 Basic Questions
		5.3.2 More Refined Questions
		5.3.3 Terra and Luna
	5.4 Central Bank Digital Currency
		5.4.1 Bank of England
		5.4.2 European Central Bank
		5.4.3 Sveriges Riksbank
		5.4.4 Uncharted Territory
	References
6 Regulation
	6.1 A Case Study
	6.2 Basic Ideas
	6.3 Stablecoins as Privately Produced Money
	6.4 What is a Bank
	References
7 Conclusions
Index