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How to Design Cryptocurrency Value and How to Secure Its Sustainability in the Market

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  • Soonduck Yoo

    (Business Administration, Hansei University, Gunpo 15852, Korea)

Abstract

The purpose of this study is to analyze the contents of cryptocurrency value design based on adaptability to the current market. It is also intended to provide a method of issuing cryptocurrency before its creation, and an operation method afterwards. Activities before the creation of cryptocurrency must determine desirable behaviors and rewards to create value, and suggest countermeasures to prevent participants from engaging in undesirable behaviors. After the creation of a cryptocurrency, it is necessary to propose a method to induce scarcity and increase demand so that the value of the generated cryptocurrency can be sustained. To observe this, we looked at the contents of the value design of the eight types of cryptocurrencies currently in use in the market. Some cryptocurrencies, such as Bitcoin, are choosing mining as a reward, to secure scarcity for maintaining the value of cryptocurrency, limiting the amount of issuance, and burning the already issued cryptocurrency in the market. Also, increasing demand helps maintain the value of cryptocurrency. This study can contribute to supporting the growth of a healthy cryptocurrency market through cryptocurrency-related research.

Suggested Citation

  • Soonduck Yoo, 2021. "How to Design Cryptocurrency Value and How to Secure Its Sustainability in the Market," JRFM, MDPI, vol. 14(5), pages 1-12, May.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:5:p:210-:d:549565
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    References listed on IDEAS

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    1. Pavel Ciaian & Miroslava Rajcaniova & d’Artis Kancs, 2016. "The economics of BitCoin price formation," Applied Economics, Taylor & Francis Journals, vol. 48(19), pages 1799-1815, April.
    2. Nashirah Abu Bakar & Sofian Rosbi & Kiyotaka Uzaki, 2017. "Cryptocurrency Framework Diagnostics from Islamic Finance Perspective: A New Insight of Bitcoin System Transaction," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 4(1), pages 19-28, November.
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    Cited by:

    1. Zvonko Merkaš & Vlasta Roška, 2021. "The Impact of Unsystematic Factors on Bitcoin Value," JRFM, MDPI, vol. 14(11), pages 1-17, November.

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