Degree Type
Honors Capstone Project
Date of Submission
Spring 5-2-2018
Capstone Advisor
Raja Velu
Honors Reader
Linda Hartsock
Capstone Major
Political Science
Capstone College
Management
Audio/Visual Component
no
Capstone Prize Winner
no
Won Capstone Funding
no
Honors Categories
Social Sciences
Subject Categories
Business | E-Commerce | Management Information Systems
Abstract
In the past few months, there has been an incredible craze about Bitcoins and Blockchain. Prices skyrocketed, and trading platforms emerged very quickly. This new cryptocurrency economy has been compared to the more traditional economy which has been shaken by many crises in the past twenty years. Crises arise when trust collapses. With a mix of interpersonal and institutional trust, our financial system and its institutions are considered obsolete. We are repeating the same mistakes over and over again. Bitcoin will fix our current economy by providing three new elements of Trust: (1) Decentralized architecture and governance neutrality based on consensus protocols (2) Transparency of the algorithms (3) Unbreakable Underlying Technologies. Computational trust provides answers to questions that have been raised since 2008 and help avoid fraud and any potential breach of trust.
However, Bitcoins has its limits and is highly volatile. By proving the market inefficiency, the specific relationships between the different exchanges and showing potential arbitrage opportunities with respectively an autocorrelation analysis, a volatility spillover analysis and a co-integration analysis, one will understand how this Bitcoin’s “wild west” can only reach maturity if and if only, regulations come into the Bitcoin the market.
Recommended Citation
Rosso, Quentin Rene Marcel, "Bitcoin, Blockchain and Trust" (2018). Renée Crown University Honors Thesis Projects - All. 1201.
https://surface.syr.edu/honors_capstone/1201
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
