This book describes how the rapid advancement in encryption and network computing gave birth to new tools and products that have influenced the local and global economy alike. One recent and notable example is the emergence of virtual currencies (such as Bitcoin) also known as cryptocurrencies. Virtual currencies introduced a fundamental transformation that affected the way goods, services and assets are exchanged. As a result of its distributed ledgers based on blockchain, cryptocurrencies not only offer some unique advantages to the economy, investors, and consumers, but also pose considerable risks to users and challenges for regulators when fitting the new technology into the old legal framework. The core of this proposed book is to present and discuss the evidence on financial asset capabilities of virtual currencies. The contributors of this volume analyze several interesting and timely issues such as the particularities of virtual currencies and their statistical characteristics; the diversification benefits of virtual currencies; the behavior and dependence structure between virtual currencies and the financial markets; the economic implications of virtual currencies, their effects, their price risk, and contagion spillovers in a unified and comprehensive framework;  the future of virtual currencies and their distributed ledgers technology.

This book describes how the rapid advancement in encryption and network computing gave birth to new tools and products that have influenced the local and global economy alike. One recent and notable example is the emergence of virtual currencies (such as Bitcoin) also known as cryptocurrencies. Virtual currencies introduced a fundamental transformation that affected the way goods, services and assets are exchanged. As a result of its distributed ledgers based on blockchain, cryptocurrencies not only offer some unique advantages to the economy, investors, and consumers, but also pose considerable risks to users and challenges for regulators when fitting the new technology into the old legal framework. The core of this proposed book is to present and discuss the evidence on financial asset capabilities of virtual currencies. The contributors of this volume analyze several interesting and timely issues such as the particularities of virtual currencies and their statistical characteristics; the diversification benefits of virtual currencies; the behavior and dependence structure between virtual currencies and the financial markets; the economic implications of virtual currencies, their effects, their price risk, and contagion spillovers in a unified and comprehensive framework;  the future of virtual currencies and their distributed ledgers technology.

Chapter 1 Cryptocurrencies as an Asset Class.- Chapter 2 Are virtual currencies virtuous? Ethical and Environmental Issues.- Chapter 3 Cryptocurrency Mining.- Chapter 4 Regulating Bitcoin: A Tax Case Study.- Chapter 5 Are Cryptocurrencies Truly Trustless?.- Chapter 6 Blockchain & Alternative Sources of Financing.- Chapter 7 Tokenomics.- Chapter 8 Crypto Tokens and Token Offerings: An Introduction.- Chapter 9 Initial Coin Offerings: What Do We Know and What are the Success Factors?.- Chapter 10 Initial Coin Offerings (ICOs): Risks, Regulation, and Accountability.- Chapter 11 Cryptocurrencies and Risk Mitigation.