Handbook of Digital Currency: Bitcoin, Innovation, Financial Instruments, and Big Data

Editor: Lee Kuo Chuen, David
Publication Year: 2015
Publisher: Elsevier Science & Technology

Single-User Purchase Price: $180.00
Unlimited-User Purchase Price: $270.00
ISBN: 978-0-12-802117-0
Category: Business, Finance & Economics - Economics
Image Count: 131
Book Status: Available
Table of Contents

An award-winning reference work that provides complete coverage on the emerging phenomenon of digital currencies.

Share this

Table of Contents

  • Contributors
  • Preface and Acknowledgments
  • Part 1 Digital Currency and Bitcoin
  • Section One Bitcoin and Alternative Cryptocurrencies
  • Introduction to Bitcoin
  • 1.1 The Next Generation of Money and Payments
  • 1.2 Digital Currency as Alternative Currency
  • 1.2.1 “Digital” versus “virtual”
  • 1.2.2 Classifying alternative currencies
  • 1.2.3 Why alternative currencies
  • 1.3 Cryptocurrency
  • 1.3.1 The nature of cryptocurrency
  • 1.3.2 The beginning: eCash
  • 1.3.3 Pioneering Internet payments with digital gold
  • 1.3.4 Revival of cryptocurrency
  • 1.3.5 The rise of Bitcoin
  • 1.4 General Features of Bitcoin
  • 1.4.1 Network and digital currency
  • 1.4.2 Genesis and decentralized control
  • 1.4.3 How Bitcoin works
  • 1.4.4 Buying and storing bitcoins
  • 1.4.5 Mining to create new bitcoins and process transactions
  • 1.4.6 Security and cryptography
  • 1.4.7 Pseudoanonymity
  • 1.5 Benefits and Risks
  • 1.5.1 Freedom of payments
  • 1.5.2 Merchant benefits
  • 1.5.3 User control
  • 1.5.4 Platform for further innovation
  • 1.5.5 Internal change and volatility
  • 1.5.6 Facilitation of criminal activity
  • 1.5.7 Legal regulatory attitude
  • 1.5.8 Economic risk
  • 1.6 Impact of the Digital Currency Revolution
  • 1.7 Conditions for a Successful Cryptocurrency
  • 1.7.1 Ecosystem
  • 1.7.2 Incentives
  • 1.7.3 Identification
  • 1.8 Future Prospects and Conclusion
  • Acknowledgments
  • References
  • Is Bitcoin a Real Currency? An Economic Appraisal
  • 2.1 Introduction
  • 2.2 History and Background of Bitcoin
  • 2.3 Bitcoin’s Weaknesses as a Currency
  • 2.3.1 Medium of exchange
  • 2.3.2 Unit of account
  • 2.3.3 Store of value
  • 2.4 Conclusion: Obstacles Faced by Bitcoin
  • Acknowledgments
  • References
  • Bitcoin Mining Technology
  • 3.1 Introduction
  • 3.1.1 A distributed or decentralized network?
  • 3.2 Technology Behind Bitcoin
  • 3.2.1 Block
  • 3.2.2 Blockchain
  • 3.2.3 Block-hashing mechanism
  • 3.2.4 Bitcoin address
  • 3.3 Mining Process
  • 3.4 Mining Possibilities
  • 3.4.1 Solo mining
  • 3.4.2 Hardware
  • 3.4.3 Software
  • 3.4.4 Factors to consider
  • 3.4.5 Mining contracts
  • 3.5 Mining Pools
  • 3.5.1 Reward types
  • 3.6 Threats to Mining
  • 3.7 Recent Advancements
  • 3.8 Conclusion
  • References
  • Further Reading
  • National Cryptocurrencies
  • 4.1 The First Wave
  • 4.1.1 AuroraCoin
  • 4.1.1.1 SpainCoin
  • 4.1.1.2 PesetaCoin
  • 4.1.1.3 GreeceCoin
  • 4.1.1.4 ScotCoin
  • 4.1.2 AphroditeCoin
  • 4.1.3 GaelCoin
  • 4.1.4 IrishCoin
  • 4.1.5 CryptoEscudo
  • 4.1.6 Deutsche eMark
  • 4.1.7 Ekrona
  • 4.1.8 eGulden
  • 4.1.9 MazaCoin
  • 4.1.10 MapleCoin
  • 4.1.11 IsraCoin
  • 4.2 The Future of National Cryptocurrency
  • 4.2.1 More than currency
  • 4.3 Conclusion
  • Sources
  • Evaluating the Potential of Alternative Cryptocurrencies
  • 5.1 Introduction
  • 5.2 Different Types of Altcoins
  • 5.3 Launching an Altcoin
  • 5.4 Data Collection and Altcoin Evaluation Strategy
  • 5.5 Altcoin Evaluation Results
  • 5.5.1 Community support
  • 5.5.2 Developer activity
  • 5.5.3 Liquidity
  • 5.5.4 Market capitalization
  • 5.5.5 Overall rank
  • 5.6 Empirical Research Using Social Network Data
  • 5.7 Empirical Analysis Using Time Series and Cross-Section Data
  • 5.8 Conclusion
  • Appendix: Empirical Analysis of Bitcoin and Altcoins
  • 5A.1 Time Series Data Analysis of Bitcoin: Cointegration Analysis Through VECM and Granger Causality Test
  • 5A.1.1 Data
  • 5A.1.2 Methodology
  • 5A.1.2.1 Unit root test
  • 5A.1.2.2 Cointegration test
  • 5A.1.2.3 Vector error-correction model
  • 5A.1.3 Empirical results
  • 5A.1.3.1 Unit root test results
  • 5A.1.3.2 Granger causality test on developer activity and community strength system
  • 5A.1.3.3 VECM for liquidity system
  • 5A.2 Cross-Sectional Data Analysis on Altcoins: Linear and Quantile Regression
  • 5A.2.1 Data
  • 5A.2.2 Methodology
  • 5A.2.2.1 Linear regression
  • 5A.2.2.2 Quantile regression
  • 5A.2.3 Linear regression estimation
  • 5A.2.4 Quantile regression estimation
  • Key Factors’ Analysis
  • 5A.3 Conclusion and Issues
  • Appendix
  • Key Factors’ Analysis
  • References
  • Section Two E-Payment and Security
  • The Effect of Payment Reversibility on E-commerce and Postal Quality
  • 6.1 Introduction
  • 6.2 The Model
  • 6.3 Basic Case
  • 6.4 Results with Postal Quality
  • 6.5 Conclusion
  • References
  • Blockchain and Digital Payments: An Institutionalist Analysis of Cryptocurrencies
  • Acknowledgments
  • 7.1 Introduction
  • 7.2 Definition
  • 7.3 The Structure and the Incentives Behind the Supply and Demand of Cryptocurrencies
  • 7.4 Understanding Institutional Change
  • 7.5 The Ceremonial Encapsulation of Cryptocurrencies in the Established Model of Regulation for Digital Payments
  • 7.6 Cryptocurrencies as Mature Payment Technologies: Challenges in the Near Future
  • 7.7 Conclusions
  • References
  • Counterfeiting in Cryptocurrency: An Emerging Problem
  • 8.1 Chapter Overview
  • 8.2 Introduction: Cryptocurrency Has Virtually Evolved from Hard Currency
  • 8.3 The Basic Function of Currency: A Medium of Exchange
  • 8.3.1 Ownership and transferability
  • 8.3.2 The ability to store value
  • 8.3.3 Security in property rights
  • 8.4 Counterfeiting: Methods, Motivation, and Opportunities
  • 8.5 The Global Anticounterfeiting Initiative
  • 8.6 Deterring Counterfeiting in the Future
  • 8.7 Summary
  • References
  • Section Three Big Data and Network Effect
  • Emergence, Growth, and Sustainability of Bitcoin: The Network Economics Perspective
  • 9.1 Network Economics and Cryptocurrencies
  • 9.1.1 Gaining critical mass
  • 9.1.1.1 Direct externalities
  • 9.1.1.2 Indirect externalities
  • 9.1.1.3 Other implications of network externalities
  • 9.2 Sustainability of a Cryptocurrency Network
  • 9.2.1 Incentives of mining
  • 9.2.2 An agent-based simulation of miners' incentive over time
  • 9.2.3 On Bitcoins and red balloons
  • 9.3 Discussion/Conclusion
  • References
  • Cryptocurrencies as Distributed Community Experiments
  • 10.1 Introduction
  • 10.2 From Bitcoin as Single Cryptocurrency to an Ecosystem of Cryptocurrencies
  • 10.3 Altcoins as Evolutionary Problem Solving and “Proof of Concepts”
  • 10.4 Overview of the Main Critique and Discourse on Cryptocurrencies
  • 10.4.1 From a distributed system to possible centralization: The mining arms race
  • 10.4.2 The “Goldfinger Attack” and the “Tragedy of the Commons”
  • 10.4.3 Block generation time and transaction speed
  • 10.4.4 Energy usage
  • 10.4.5 Velocity of circulation and the deflationary spiral
  • 10.4.6 Anonymity and privacy in cryptocurrencies
  • 10.4.7 Social currencies
  • 10.5 The Future of the Blockchain
  • 10.5.1 The Bitcoin blockchain does not scale (yet)
  • 10.6 Conclusion
  • References
  • Extracting Market-Implied Bitcoin's Risk-Free Interest Rate
  • 11.1 Introduction
  • 11.2 A Model for the Determination of Bitcoin's Risk-Free Interest Rate
  • 11.2.1 Uncovered interest rate parity
  • 11.2.2 Monetary economic theory
  • 11.2.3 A time-varying premium model
  • 11.3 Application to US$ and Euro Data
  • 11.4 Perspective on Bitcoin Interest Rate
  • 11.5 Conclusion
  • References
  • A Microeconomic Analysis of Bitcoin and Illegal Activities
  • Acknowledgments
  • 12.1 Introduction
  • 12.2 The Baseline Model
  • 12.2.1 Compliant consumers
  • 12.2.2 Noncompliant consumers
  • 12.2.3 Production technologies
  • 12.3 Market Equilibrium
  • 12.4 Demand for Bitcoins
  • 12.5 Extensions
  • 12.5.1 Variable fines
  • 12.5.2 Bitcoin theft
  • 12.6 Concluding Remarks
  • References
  • Part 2 Finance Markets and Bitcoin
  • Section Four Regulation and Taxation
  • Legal Issues in Cryptocurrency
  • 13.1 Introduction
  • 13.2 Legality Versus Illegal
  • 13.2.1 Validity of transaction as a currency
  • 13.2.2 Validity of transaction as a foreign currency
  • 13.2.3 Tax incidences and stamp duty
  • 13.2.4 Filing suit in cases of legal disputes
  • 13.2.5 Organizational status of promoters and participators
  • 13.2.6 Monetary and fiscal policies
  • 13.3 Global Regulatory Movement
  • 13.4 Conclusion
  • References
  • How to Tax Bitcoin?
  • 14.1 Introduction
  • 14.2 Characteristic and Nature of Bitcoin
  • 14.3 Income Tax
  • 14.3.1 Concept of taxable income
  • 14.3.2 Challenges to income tax compliance
  • 14.4 Consumption Tax
  • 14.4.1 Initial comments
  • 14.4.2 Taxable person
  • 14.4.3 Taxable transaction
  • 14.4.4 Place of supply
  • 14.4.5 Exemptions
  • 14.5 National Approaches
  • 14.6 Conclusions
  • References
  • Cryptocurrency and Virtual Currency: Corruption and Money Laundering/Terrorism Financing Risks?
  • 15.1 Corruption: A Social Evil
  • 15.2 Review of Financial Action Task Force on Money Laundering Compliance on PEPs
  • 15.2.1 Noncompliant and partially compliant jurisdictions
  • 15.2.2 Recommendations
  • 15.3 Cryptocurrencies and Virtual Currencies and Their Potential to be Misused for Money Laundering
  • 15.4 The Way Forward: A Conceptual Intelligence-led AML/CTF Strategy
  • References
  • A Light Touch of Regulation for Virtual Currencies
  • 16.1 Introduction
  • 16.1.1 Virtual currency
  • 16.1.2 Decentralized cryptocurrency
  • 16.1.3 Market participants in a virtual currency system
  • 16.2 Legitimate Uses
  • 16.3 Potentially Regulated Risks
  • 16.3.1 Counterparty risk in a virtual, decentralized system
  • 16.3.2 Consumer protection: loss and theft
  • 16.3.3 Financial crime
  • 16.3.4 Risk of facilitating money laundering and terrorist financing
  • 16.4 Survey of Regulatory Approaches in Tackling These Risks
  • 16.4.1 Restrictive regulation
  • 16.4.2 Discourage participation to allow time to develop comprehensive regulation
  • 16.4.3 Regulate under existing structures
  • 16.4.4 Encouragement with self-regulation
  • 16.4.5 Active engagement for multicurrency coexistence
  • 16.4.6 Laissez-faire or no regulation yet
  • 16.4.7 Lack of international uniformity
  • 16.5 Highlight on US Regulation
  • 16.5.1 FinCEN
  • 16.5.2 New York's BitLicense
  • 16.5.3 Commentary on BitLicense
  • 16.6 Toward a Light-Touch Approach to Regulation
  • 16.6.1 General policy considerations
  • 16.6.2 A light touch with three lenses
  • 16.6.3 This is only the beginning
  • References
  • Real Regulation of Virtual Currencies
  • 17.1 Introduction
  • 17.2 Background
  • 17.2.1 How Bitcoin works
  • 17.2.1.1 The public ledger
  • 17.2.1.2 Mining
  • 17.2.1.3 Peer-to-peer network
  • 17.2.1.4 Cryptography
  • 17.2.1.5 Speculation
  • 17.2.1.6 Wallets
  • 17.2.1.7 Using Bitcoins
  • 17.2.2 Major vendors dealing bitcoins
  • 17.3 Bitcoin Prosecutions
  • 17.3.1 E-gold
  • 17.3.2 Liberty Reserve
  • 17.3.3 Western Express
  • 17.3.4 Silk Road
  • 17.4 FinCEN Regulation of Virtual Currencies
  • 17.4.1 Virtual currency and Money Service Businesses
  • 17.4.2 Real currency and virtual currency
  • 17.4.3 Regulated persons and entities
  • 17.4.4 Users, exchangers, and administrators
  • 17.4.4.1 Users of virtual currency
  • 17.4.4.2 Administrators and exchangers of virtual currency: generally
  • 17.4.5 Persons and entities excluded from regulation
  • 17.4.6 Duties of money transmitters
  • 17.4.7 Recent FinCEN administrative rulings
  • 17.4.7.1 The hotel payment system
  • 17.4.7.2 The convertible virtual currency trading system
  • 17.5 SEC Regulation of Virtual Currencies
  • 17.5.1 What is a security?
  • 17.5.2 Is Bitcoin a security?
  • 17.5.3 SEC treatment of Bitcoins
  • 17.5.4 The SEC's concerns
  • 17.5.5 The SEC's focus
  • 17.6 CFTC Regulation of Virtual Currencies
  • 17.6.1 Bitcoins as commodity futures
  • 17.6.2 Bitcoins as foreign exchange, currency swaps, or forwards
  • 17.6.3 Regulation of Bitcoin “Spot” transactions
  • 17.6.4 Bitcoin as foreign exchange or derivatives
  • 17.6.5 CFTC and BSA compliance
  • 17.6.6 Recent CFTC statements on Bitcoin
  • 17.6.7 CFTC approval of TeraExchange
  • 17.7 IRS Treatment of Virtual Currencies
  • 17.8 FINRA Concerns Regarding Virtual Currencies
  • 17.9 Congressional Concerns Regarding Virtual Currencies
  • 17.10 Conclusions
  • References
  • A Facilitative Model for Cryptocurrency Regulation in Singapore
  • 18.1 Introduction
  • 18.2 Background to Cryptocurrencies
  • 18.2.1 Bitcoin
  • 18.2.2 The ecosystem
  • 18.2.3 Benefits and future applications
  • 18.3 Clear and Targeted Regulation
  • 18.3.1 Antimoney laundering and counter-terrorist financing
  • 18.3.1.1 Justification for AML/CTF regulation
  • 18.3.1.2 AML/CTF regulation in Singapore
  • 18.3.2 Securities and financial regulation
  • 18.3.3 Theft or misappropriation
  • 18.4 A Self-regulatory Framework
  • 18.5 International Coordination and Harmonization
  • 18.6 Conclusion
  • References
  • Section Five Financial Innovation and Internet of Money
  • Advancing Egalitarianism
  • 19.1 Introduction
  • 19.2 Development of Centrally Controlled Money Systems
  • 19.3 A New Paradigm: Decentralization of Authorities
  • 19.4 Practicalities
  • 19.4.1 Blockchains
  • 19.4.2 Cryptographic hashing
  • 19.4.3 The blockchain as consensus data
  • 19.4.4 Proof-of-work and proof-of-stake voting
  • 19.4.5 Public-private key pair cryptography aka digital signatures
  • 19.5 The Future of Blockchain-Based Systems
  • 19.6 Conclusion
  • References
  • How Digital Currencies Will Cascade up to a Global Stable Currency: The Fundamental Framework for the Money of the Future
  • 20.1 Introduction
  • 20.2 Commodity-Backed Digital Mint
  • 20.3 Derived Commodities
  • 20.4 Cascading
  • 20.4.1 Composite backing (ground cascading)
  • 20.4.2 Digital cascading
  • 20.4.3 Illustration
  • 20.4.4 Cascading stability
  • 20.5 Outlook
  • 20.5.1 Financial Panacea
  • References
  • Bitcoin-Like Protocols and Innovations
  • 21.1 The Bitcoin System and the Element of Trust
  • 21.2 A New Digital Commodity
  • 21.3 Pseudonymous Ownership and Trades
  • 21.4 An Open and Decentralized Ledger System
  • 21.5 Blockchain, Mining, Block Time, and Forks
  • 21.6 Validation of Transaction Over a Peer-to-Peer Network
  • 21.7 Operation via Open-Source Protocols
  • 21.8 The Anatomy of Bitcoin
  • 21.8.1 Key components of bitcoin
  • 21.8.2 Uniqueness of bitcoin
  • 21.8.3 Monetary anachronism or a harbinger of financial innovations?
  • 21.9  Bitcoin Ecosystem
  • 21.9.1 Bitcoin exchanges
  • 21.9.2 Bitcoin wallets
  • 21.9.3 Specialized security services
  • 21.9.4 Prepaid card, merchant, and ATM solutions
  • 21.10 Benefits of Bitcoin: An Assessment
  • 21.10.1 Transaction irreversibility
  • 21.10.2 Identity theft
  • 21.10.3 Cheaper transactions
  • 21.10.4 More and faster innovation
  • 21.11 Future-Proofing Bitcoin: Addressing Key Risks
  • 21.11.1 Stabilizing bitcoin value
  • 21.11.2 Regulating bitcoin use
  • 21.11.3 Efficiency of the mining process
  • 21.11.4 Technical robustness
  • 21.12 Potential Demand Drivers for Bitcoin
  • 21.12.1 Speculative motive: value appreciation
  • 21.12.2 Anonymity motive: privacy
  • 21.12.3 Precautionary motive: capital flight
  • 21.12.4 Convenience motive: payments
  • 21.13 Conclusions: The New Vistas Opened Up by Bitcoin
  • References
  • Blockchain Electronic Vote
  • 22.1 The Problem with Proprietary Voting Systems
  • 22.2 Open-Source, Free Software Electronic Transaction and Voting Systems
  • 22.2.1 Preelection: Know the list of candidates
  • 22.2.2 Check the list of voters
  • 22.2.3 Prepare the ballot
  • 22.2.4 Counting votes on election day
  • 22.2.5 Postelection: Showing independently verifiable results
  • 22.3 Conclusion
  • References
  • Translating Commons-Based Peer Production Values into Metrics: Toward Commons-Based Cryptocurrencies
  • 23.1 Introduction
  • 23.2 Commons-Based Peer Production
  • 23.3 Value Metrics
  • 23.3.1 Universal indicator of value
  • 23.3.2 Alternative value metrics
  • 23.3.3 Competing value systems
  • 23.4 Complementary Currencies
  • 23.4.1 Commons-based cryptocurrencies
  • 23.4.2 Translating CBPP values into metrics
  • 23.4.2.1 Systemic value of CBPP
  • 23.4.2.2 Value of CBPP contributions
  • 23.5 Conclusion
  • References
  • The Confluence of Bitcoin and the Global Sharing Economy
  • 24.1 2008 Stimulus
  • 24.2 Confluence of Bitcoin and the Global Sharing Economy
  • 24.3 Sharing Economy
  • 24.4 Resource Ownership Versus Access
  • 24.5 Mental Accounting
  • 24.6 Bitcoin
  • 24.7 Distributed Network
  • 24.8 Token Lifecycle
  • 24.9 Device Level Resources
  • References
  • What Does Cryptocurrency Mean for the New Economy?
  • Acknowledgment
  • 25.1 Introduction
  • 25.1.1 Bank money
  • 25.1.2 Company money
  • 25.1.3 Community money
  • 25.2 Bitcoin
  • 25.2.1 Frictionless low-value payments
  • 25.2.2 Anonymity
  • 25.2.3 Assassination markets
  • 25.2.4 Beyond government control
  • 25.3 A Money Narrative
  • 25.4 Beyond Money
  • 25.5 Conclusions
  • References
  • Bitcoin: A Look at the Past and the Future
  • 26.1 Reasons for Success and Failure
  • 26.2 A Numismatic Approach
  • 26.3 The End of Money
  • 26.4 The Role of the Government
  • 26.5 The Role of Banks
  • 26.6 Future Possibilities
  • References
  • Sources
  • Section Six Investments and Crowdfunding
  • Bitcoin IPO, ETF, and Crowdfunding
  • Acknowledgment
  • 27.1 Introduction
  • 27.2 IPO: Digital CC
  • 27.2.1 History
  • 27.2.2 Effect of Macro Energy acquiring Digital CC
  • 27.2.3 Proposed business
  • 27.2.3.1 Bitcoin mining
  • 27.2.3.2 Digital currencies trading and investment
  • 27.2.3.3 Consumer products
  • 27.2.3.4 Others
  • 27.2.4 Corporate structure and material business contracts
  • 27.2.4.1 Share purchase agreement between the company and the vendors
  • 27.2.4.2 Loan facility agreement between the company and Digital CC
  • 27.2.4.3 CloudHashing agreement between Digital CC and Technology IQ
  • 27.2.4.4 Bitfury agreement
  • 27.2.4.5 Lease of goods agreement
  • 27.2.4.6 Development agreement between Digital CC IP Pty Ltd (a wholly owned subsidiary of Digital CC) and Mpire Media Pty Ltd
  • 27.2.4.7 Intellectual property license agreements
  • 27.2.4.8 Shareholders’ and directors’ loan agreement and deed of variation between Digital CC and the entities associated with certain vendors and proposed directors
  • 27.2.4.9 Facility agreement between Digital CC and one of the vendors, Lydian Enterprises Pty Ltd ATF Lydian Trust
  • 27.2.4.10 Trading account agreements between Digital CC Management Pty Ltd (a wholly owned subsidiary of Digital CC) and Alex Karis, NRB International LLC, and William Brindise
  • 27.2.4.11 Other agreements
  • 27.3 ETF: WBT
  • 27.3.1 Introduction
  • 27.3.2 How the trust operates
  • 27.3.3 Reasons for investing in WBT
  • 27.3.3.1 Reduced risks of holding bitcoins
  • 27.3.3.2 Transparency
  • 27.3.3.3 Cheaper
  • 27.3.4 Trust structure
  • 27.3.4.1 Roles of the sponsor and the trustee
  • 27.3.4.2 Custody of WBT bitcoins in cold storage
  • 27.3.4.3 Segregated custody accounts for temporary live storage
  • 27.3.4.4 Valuation
  • 27.3.4.5 Share arrangements
  • 27.3.4.6 Redemption of shares by authorized participants
  • 27.3.5 Risk factors
  • 27.3.5.1 Private key loss or destruction
  • 27.3.5.2 Exchange market and WinkDex risks
  • 27.3.5.3 Trust risks
  • 27.3.5.4 Conflicts of interest
  • 27.3.6 Termination events
  • 27.4 Crowdfunding
  • 27.4.1 History of crowdfunding
  • 27.4.2 Developments in crypto crowdfunding
  • 27.4.3 Counterparty
  • 27.4.4 Maidsafe, Safecoin, Mastercoin
  • 27.4.5 Swarm
  • 27.4.6 Ethereum
  • 27.4.7 Storj
  • 27.4.8 Gems, BitShares Music Foundation
  • 27.4.9 Namecoin, BitShares, Colored Coin, and Ripple
  • 27.5 Conclusion
  • References
  • Relevant Websites
  • Bitcoin Exchanges
  • 28.1 Introduction
  • 28.2 Bitcoin Exchanges
  • 28.3 Exposure to Risk of Exchange Failure
  • 28.3.1 Bitcoin exchange closure due to security breach
  • 28.3.2 Lost/stolen BTCs
  • 28.4 Survival Time of an Exchange
  • 28.4.1 Transaction volume
  • 28.4.2 Experiencing a security breach
  • 28.4.3 Compliance capabilities
  • 28.4.4 Backroom and settlement support
  • 28.4.5 Financial strength
  • 28.5 Discussion
  • 28.6 Conclusion
  • References
  • Additional Readings