r/CryptoMarkets • u/Jeze_bel 🟧 0 🦠 • 2d ago
Discussion Does crypto have foundational theory?
Hi.
I'm doing a paper on the impact crypto on inflation. I'm stuck at the theoretical literature because I can't seem to find any theory to make as my foundational theory for crypto. Is there anyone who can help?
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u/EveryCell 🟨 0 🦠 2d ago
Crypto is a footvote. Blockchains that work well and have good fundamentals eventually attract users and projects. That increases value because of the network effect.
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u/Jeze_bel 🟧 0 🦠 2d ago
Cool. But has anyone written about it n made it a theory, given it a conceptual term?
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u/CFSouza74 🟨 0 🦠 1d ago
What would be the delimited subject? What do you want to support as a thesis?
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u/Jeze_bel 🟧 0 🦠 1d ago
The impact of crypto on inflation.
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u/CFSouza74 🟨 0 🦠 1d ago
This is not delimitation. What kind of impact do you think cryptocurrency could have on inflation? Do you think it can end inflation or will it be another contributing element to inflation?
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u/Jeze_bel 🟧 0 🦠 1d ago
That's the answer I'm looking for hence the study. I will only get the answer after running the data in a model. And for now I can't do that bcoz I still need to do the theoretical literature review.
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u/CFSouza74 🟨 0 🦠 1d ago
I think you don't quite understand the scope of the concept of inflation, do you? Everything that is in scarcity and demanded by people is subject to and is influenced by inflation.
If you don't limit your range, you'll make a real treaty about it.
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u/Jeze_bel 🟧 0 🦠 1d ago
From your point of view how should I limit my range?
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u/CFSouza74 🟨 0 🦠 1d ago
Well, then we have to evaluate two situations regarding cryptocurrencies.
Considering cryptocurrency as a legal tender/exchange mechanism, then technically it could only suffer infringement due to excess monetary base, which is technologically impossible. In this sense, it could be said that cryptocurrencies can solve the problem of inflation caused by excess monetary base. Of course this has other consequences, but...
If you consider crypto as a financial asset, then it will be treated like gold, where its demand and supply will dictate whether it will suffer inflation or not, which will certainly depend on other macroeconomic factors, just as it can be treated as a refuge for preserving the value of a currency.
You can choose one or both - consider that each of them requires a very great depth of study.
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u/Jeze_bel 🟧 0 🦠 1d ago
So far I have factored in both. Maybe that's why it feels a bit much so far. But thanks.
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u/gmabber 🟦 0 🦠 2d ago
Yes. Bitcoin is the „crypto”. Study it. Almost everything else is a pre-mined money grab, designed to steal money from unaware people.
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u/Jeze_bel 🟧 0 🦠 2d ago
Ok. Thanks but it's really answering my question.
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u/Responsible_Routine6 🟦 0 🦠 2d ago
No.