Is Bitcoin Trustworthy?

Abstract Using a recent philosophical account of trustworthiness, the author evaluates whether Bitcoin can be considered trustworthy in each of its three most common uses: as a medium of exchange, as a store of value, and as a speculative investment. Primarily because the entity that controls Bitcoi...

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Bibliographic Details
Published inDisruptive Innovation in Business and Finance in the Digital World Vol. 20; pp. 151 - 165
Main Author Scharding, Tobey
Format Book Chapter
LanguageEnglish
Published United Kingdom Emerald Publishing Limited 21.10.2019
Subjects
Accounting and Finance
trust
cryptocurrency
trustworthiness
currency
ethics
Bitcoin
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Summary:Abstract Using a recent philosophical account of trustworthiness, the author evaluates whether Bitcoin can be considered trustworthy in each of its three most common uses: as a medium of exchange, as a store of value, and as a speculative investment. Primarily because the entity that controls Bitcoin, its community of users, does not take actions to stabilize and secure the cryptocurrency – that is, in the manner that nations’ monetary policies can stabilize and secure national currencies – the author evaluates Bitcoin as untrustworthy. The author then offer an argument that its untrustworthiness undermines Bitcoin’s ability to serve both as medium of exchange and as store of value. Bitcoin’s untrustworthiness does not, however, undermine its usefulness as a speculative investment. Finally, the author discuss the extent to which – and how – other cryptocurrencies can avoid the evaluation that they are untrustworthy.
ISBN:9781789733822
1789733820
ISSN:1569-3767
DOI:10.1108/S1569-376720190000020017