Title: Can cryptocurrencies overtake the fiat money?

Authors: Avaneesh Jumde; Boo Yun Cho

Addresses: Higher Colleges of Technology, Dubai Women's Campus, Al Nahda, 16062, Dubai, United Arab Emirates ' Higher Colleges of Technology, Dubai Women's Campus, Al Nahda, 16062, Dubai, United Arab Emirates; Jeju National University, 102 Jejudaehak-ro, Jeju-si, Jeju Special Self-Governing Province, 63243, Republic of Korea

Abstract: Since the awakening of Bitcoin, the terms 'blockchain', 'cryptocurrencies' have become the buzz words. Cryptocurrencies were thought to be very promising and boomed feverously in the hope that it might be capable of replacing the traditional currency. On this background, the paper has following objectives: 1) to compare the fiat money with cryptocurrency; 2) to study the potential of cryptocurrency of being capable of replacing the fiat money; 3) to propose the framework to evaluate the sustainability of the possible candidates to be the dominating currency. The researchers have applied the analytic hierarchy process (AHP) method to derive ratio scales from paired comparisons and rated the expected performances for two alternatives. Nine factors were selected with the hierarchical structure to measure the relative performance of proposed candidates. The results found that fiat money is still preferred to cryptocurrency due to many reasons.

Keywords: cryptocurrency; fiat money; digital currency; traditional money; blockchain; medium of exchange; store of value; unit of accounting; functions of money; analytic hierarchy process; AHP.

DOI: 10.1504/IJBPM.2020.106107

International Journal of Business Performance Management, 2020 Vol.21 No.1/2, pp.6 - 20

Received: 21 May 2019
Accepted: 09 Aug 2019
Published online: 30 Mar 2020 *

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