Hello all,
I am an economics student and looking to write my dissertation on bitcoin. The problem is that it is so broad that I am struggling to narrow down my choice into a real question or issue to focus on. I have seen some interesting work done on establishing the fair price of bitcoin (using total capitalization and velocity of money) and would be interested to hear anyone's thoughts on how this could be taken further, or in a new direction!
Good initiative yours. An interesting idea to be developed, according to me, it will be to find, or to guess, the impact of bitcoin in one given economy of one country (your country for example) if legalized and regulated. Analyzing the possible good and the possible bad consequences (trying always to give solutions for the bad thing if found) that such choice can bring for that economy.
You can find today countries which have regulated (more or less) bitcoin like USA of China (important ones) and other (yet important) like Russia which have banned it. Try to find the why. I think the answer is in the impact of bitcoin in their economies and their monetary system. Try to find the reasons of their decisions and argues who has act right and who wrong.
For sure you will find, (according to me) that all have right. Because their decisions are based in the situation of their economy. So Russia is in crisis (especially the ruble as a direct consequence of the situation of the overall economy) and their have fear that people will abandon the national currency and will use more and more bitcoin. If so will be, the damages can be even bigger. This justify even the declaration of one member of Russian Government to put in jail who use bitcoin. Because even with the ban the bitcoin the bitcoin black market in Russia rose every day more.
Other situations can be found in USA and China. They don't care much because have more strong and bigger economy.
So doing all the above analyses having as main shaft the impact of bitcoin as a currency in the overall economy and especially in the national currency of your country if legalized or not can bring in life a good dissertation about bitcoin and will serve as a help even at the Authorities of your country in doing the right choices in this matter. Naturally choosing to legalize bitcoin.
The prohibition bring always more desire for the prohibited thing and give always the opposite of the needed consequence by those who prohibit.
