Cryptocurrencies to complement fiat currencies?

[NemboKid]

Hi!

I'm looking for the most suitable cryptocurrencies for making payments, namely those that could be used as an own currency and could complement or replace weak (and/or not functioning) ones in emerging markets. I'm making a study for the academic world, and will use a financial approach rather than a technical one. However, I'd love to get some help to decide which cryptocurrencies to include, as i'm not even close to know as much about the technicalities as you guys do.

I'd like to include approximately five cryptocurrencies in my study. Hence, not all of them need to be perfect but rather to be less worse (when used as a currency).

I'll consider issues such as scalability, transaction speed, inflation rate etc, but I won't care much about decentralization, anonymity or other things that don't affect the suitability as a complement to emerging market currencies. However, all arguments are valid (...to some extent). Market Cap isn't necessarily a problem because I just wanna know if you in theory could use it as a currency.

Lastly, please don't mention too new cryptocurrencies. I need to have some historical data and if the cryptocurrency is created after 2014, it could be a problem. All arguments would be much appreciated and i'm looking forward to learn from you!

Thanks!

[densuj]

Hi!

I'm looking for the most suitable cryptocurrencies for making payments, namely those that could be used as an own currency and could complement or replace weak (and/or not functioning) ones in emerging markets. I'm making a study for the academic world, and will use a financial approach rather than a technical one. However, I'd love to get some help to decide which cryptocurrencies to include, as i'm not even close to know as much about the technicalities as you guys do.

I'd like to include approximately five cryptocurrencies in my study. Hence, not all of them need to be perfect but rather to be less worse (when used as a currency).

I'll consider issues such as scalability, transaction speed, inflation rate etc, but I won't care much about decentralization, anonymity or other things that don't affect the suitability as a complement to emerging market currencies. However, all arguments are valid (...to some extent). Market Cap isn't necessarily a problem because I just wanna know if you in theory could use it as a currency.

Lastly, please don't mention too new cryptocurrencies. I need to have some historical data and if the cryptocurrency is created after 2014, it could be a problem. All arguments would be much appreciated and i'm looking forward to learn from you!

Thanks!

Well I think litecoin is suitable for your study if you are looking for altcoins be created before 2014
and litecoin has historical for your study you can search the detail informations about litecoin
on announcement section bitcointalk also you can joint to new litecoin's forum https://litecointalk.io
the comunity of litecoin will answer your question.

[ulhaq]

Why do you want to include approximately 5 cryptocurrencies? That is an arbitrary decision for an academic study. If only 2 qualify, why would you use more? If 7 are roughly equivalent, then how can you justify removing 2?

On what basis are decentralisation and anonymity not related to emerging market use? Hyperinflation has been a major economic factor in currencies. That is only possible with a centralised currency. Anonymity is also very important in the emerging markets, which are more known for corruption. There is no public ledger with existing fiat currencies. If a cryptocurrency is going to complement another currency's use, suddenly there are opportunities for exploitation that did not exist before.

When you say inflation rate, I am assuming you mean cryptocurrencies that are inflationary? I believe that eliminates bitcoin, ethereum, and litecoin from your list. Monero is inflationary, and I'm not sure which of the other ones are.

[NemboKid]

Why do you want to include approximately 5 cryptocurrencies? That is an arbitrary decision for an academic study. If only 2 qualify, why would you use more? If 7 are roughly equivalent, then how can you justify removing 2?

On what basis are decentralisation and anonymity not related to emerging market use? Hyperinflation has been a major economic factor in currencies. That is only possible with a centralised currency. Anonymity is also very important in the emerging markets, which are more known for corruption. There is no public ledger with existing fiat currencies. If a cryptocurrency is going to complement another currency's use, suddenly there are opportunities for exploitation that did not exist before.

When you say inflation rate, I am assuming you mean cryptocurrencies that are inflationary? I believe that eliminates bitcoin, ethereum, and litecoin from your list. Monero is inflationary, and I'm not sure which of the other ones are.

That is an arbitrary number, indeed, and I wont include cryptocurrencies that couldn't possibly be used as a currency. Maybe I will end up having one cryptocurrency - or ten.

You are correct when you mention ethereum, bitcoin and litecoin, and that is partly what I will explore; to see how the different cryptocurrencies could be used (perhaps pegged, perhaps used in international trade) as a complement to some emerging market currencies. I will, for instance, look into things such as the sharpe and sortino ratios (risk-adjusted return), international transaction costs, correlations between the currencies and so on. My study aim to look into the different usage of the cryptocurrencies, and which fiat currency/ies to support.

I'm fully aware of the problem with centralization and I agree with you. However, it's not relevant in my case since it doesn't imply that you cannot use it as a currency - which is the only thing I care about. It could also be difficult to quantify. But we'll see.

Thanks for the comment!