# Cryptocurrency `kaal:entity:cryptocurrency` **Status.** derived This node is assembled mechanically from the 16 claims that carry the concept tag `cryptocurrency`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 16 claims across 11 works, 2017 to 2022. **2017** - [3002908-014](https://wulfkaal.github.io/claims/3002908-014) [empirical/evidenced] *(failure mode)* -- Crypto gains are being massively underreported: despite Bitcoin rising from under twenty dollars in 2013 to over twelve hundred dollars in 2017, the IRS received only about 900 Forms 8949 indicating crypto gain or loss over four years. > While the value of Bitcoin in 2013 under $20 and its value appreciated to over $1200 in 2017, in the past four years, the IRS has only received around 900 Form 8949 that would indicate some gain or loss from cryptocurrencies. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 **2018** - [3117224-023](https://wulfkaal.github.io/claims/3117224-023) [empirical/evidenced] -- The Central Bank of Russia has indicated that regulation of ICO and cryptocurrency technology is premature and has therefore declined to issue any regulations controlling ICOs, cryptocurrency, or DLT. > At the time of publication, the Central Bank of Russia has indicated that the regulation of this technology is premature. For this reason, the Central Bank of Russia has declined to put forth any regulations to control ICO's, cryptocurrency, or DLT. Wulf A. Kaal, Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses (2018). SSRN: https://ssrn.com/abstract=3117224 - [3117224-032](https://wulfkaal.github.io/claims/3117224-032) [empirical/evidenced] -- Poland's Ministry of Finance interpretation states that selling or exchanging cryptocurrency for traditional currency, or exchanging one cryptocurrency for another, could create a VAT tax obligation. > the sale and exchange of cryptocurrencies into traditional currency and vice versa, as well as the exchange of one cryptocurrency for another, could create a VAT tax obligation. Wulf A. Kaal, Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses (2018). SSRN: https://ssrn.com/abstract=3117224 - [3117224-035](https://wulfkaal.github.io/claims/3117224-035) [mechanism/evidenced] -- The National Bank of Slovakia takes the view that cryptocurrencies are not money because countries enjoy monetary sovereignty. > The national bank takes the view that cryptocurrencies are not considered money because countries enjoy monetary sovereignty. Wulf A. Kaal, Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses (2018). SSRN: https://ssrn.com/abstract=3117224 - [3266953-012](https://wulfkaal.github.io/claims/3266953-012) [mechanism/argued] *(failure mode)* -- Because power exercised over a store of value inevitably produces economies of scale, cryptocurrencies and any other transferable store of value drive networks toward centralization. > Because of the store of value entailed in cryptocurrencies (and really any currencies or store of value), exercise of power over such value inevitably leads to centralization due to economies of scale. Craig Calcaterra, Wulf A. Kaal, Gopinath Sivalingam, Reputation Protocol for the Internet of Trust - Conceptual Whitepaper (2018). SSRN: https://ssrn.com/abstract=3266953 **2019** - [3405401-022](https://wulfkaal.github.io/claims/3405401-022) [failure/argued] *(failure mode)* -- The transferability of the stores of value entailed in cryptocurrencies creates core points of attack and undermines the very nature of decentralization. > The transferability of stores of value entailed in cryptocurrencies creates core points of attack and undermines the very nature of decentralization. Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401 - [3405401-023](https://wulfkaal.github.io/claims/3405401-023) [mechanism/argued] *(failure mode)* -- Because cryptocurrencies, like any currency or store of value, entail transferable value, the exercise of power over that value inevitably leads to centralization through economies of scale. > Because of the store of value entailed in cryptocurrencies (and really any currencies or store of value), exercise of power over such value inevitably leads to centralization due to economies of scale. Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401 - [3406323-014](https://wulfkaal.github.io/claims/3406323-014) [condition/argued] -- Centralized fiat payment systems require consumers to hold an existing banking relationship, while holding and storing cryptocurrencies does not, which gives decentralized payment systems comparative advantages in orders of magnitude. > Centralized fiat payment systems and platforms typically require some form of an existing banking relationship in order for consumers to utilize their services. Holding and storing cryptocurrencies does not require a banking relationship. Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323 - [3406323-018](https://wulfkaal.github.io/claims/3406323-018) [predictive/evidenced] -- Growth in stable cryptocurrencies traces back to attempts to combine the benefits of cryptocurrencies and blockchain with remedies for market volatility, and the growth data suggests demand for volatility management products will keep increasing. > demand for products that help manage the volatility inherent in other crypto assets is likely to continue to increase. Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323 - [3409548-034](https://wulfkaal.github.io/claims/3409548-034) [empirical/evidenced] -- Cryptocurrencies created by blockchain start-ups generate investment returns that legacy investments cannot match. > Cryptocurrencies created by blockchain start-ups generate investment returns that cannot be matched by legacy investments. Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548 - [3411897-036](https://wulfkaal.github.io/claims/3411897-036) [failure/argued] *(failure mode)* -- It is immaterial whether security incidents occur on centralized exchanges, on centralized systems appended to decentralized structures, or in the decentralized systems themselves, because the public perceives the resulting security concerns as a technology risk across all of these technologies. > structures or the decentralized systems themselves is immaterial in this context. The security concerns are seen by the public as a technology risk across technologies. Wulf A. Kaal, Decentralization - Past, Present, and Future (2019). SSRN: https://ssrn.com/abstract=3411897 **2021** - [3808852-042](https://wulfkaal.github.io/claims/3808852-042) [mechanism/argued] -- The crypto movement illustrates the feedback effects between types of decentralization: its political philosophy could not be instantiated without technological decentralization in the form of cryptocurrencies, the combination created new markets, and the movement then created new organizational forms in DAOs. > The particular political philosophy could not be instantiated without a form of technological decentralization, that is cryptocurrencies, which the movement believed to be immune from governmental control. Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852 - [3808867-036](https://wulfkaal.github.io/claims/3808867-036) [condition/argued] -- Decentralized payment systems hold a comparative advantage over centralized legacy fiat systems because holding and storing cryptocurrencies requires no banking relationship, whereas centralized fiat payment platforms typically require an existing banking relationship. > Centralized legacy fiat payment systems and platforms typically require some form of an existing banking relationship in order for consumers to utilize their services. Holding and storing cryptocurrencies does not require a banking relationship. Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867 - [3808873-005](https://wulfkaal.github.io/claims/3808873-005) [failure/argued] *(failure mode)* -- Decentralized issuers treated central bank issued digital currencies as a threat rather than as a pathway to mainstream acceptance of more decentralized cryptocurrencies, and that misreading forfeited a route to broader adoption. > Rather than seeing the central bank issued digital currencies as a pathway to mainstream acceptance of more decentralized cryptocurrencies, the decentralized issuers of digital assets and their community perceived their centralized counterparts as a threat. Wulf A. Kaal, Decentralization Neutralizers (2021). SSRN: https://ssrn.com/abstract=3808873 **2022** - [4033886-016](https://wulfkaal.github.io/claims/4033886-016) [empirical/asserted] *(failure mode)* -- As of 2022 there is no agreed upon reliable valuation method for cryptocurrencies. > An agreed-upon reliable valuation method does not exist for cryptocurrencies in 2022. Wulf A. Kaal, Samuel Evans, Hayley Howe, Digital Asset Valuation (2022). SSRN: https://ssrn.com/abstract=4033886 - [4033886-018](https://wulfkaal.github.io/claims/4033886-018) [failure/argued] *(failure mode)* -- Stocks and cryptocurrencies look similar enough, both traded on markets at fluctuating prices, to invite similar regulation, but they diverge in their potential for abuse, their nature, their acceptance, and their use. > Stocks and cryptocurrencies are both traded on markets, with fluctuating prices, and seem similar enough in context to warrant similar regulation, yet they differ in their potential for abuse, their nature, acceptance, and use.64 Wulf A. Kaal, Samuel Evans, Hayley Howe, Digital Asset Valuation (2022). SSRN: https://ssrn.com/abstract=4033886 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/cryptocurrency.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.