77,830 research outputs found
Taxation of Virtual Assets
The development of vast social networks through Massively Multiplayer Online Role-Playing Games has created in-game communities in which virtual assets have real-world values. The question has thus arisen whether such virtual assets are legal subjects of taxation. This iBrief will detail and discuss the various exclusions to taxable income, and analyze their application to the possibility of creating potential tax liability based on in-kind exchanges of virtual assets
Beyond Bitcoin: Issues in Regulating Blockchain Transactions
The buzz surrounding Bitcoin has reached a fever pitch. Yet in academic legal discussions, disproportionate emphasis is placed on bitcoins (that is, virtual currency), and little mention is made of blockchain technologyâthe true innovation behind the Bitcoin protocol. Simply, blockchain technology solves an elusive networking problem by enabling âtrustlessâ transactions: value exchanges over computer networks that can be verified, monitored, and enforced without central institutions (for example, banks). This has broad implications for how we transact over electronic networks.
This Note integrates current research from leading computer scientists and cryptographers to elevate the legal communityâs understanding of blockchain technology and, ultimately, to inform policymakers and practitioners as they consider different regulatory schemes. An examination of the economic properties of a blockchain-based currency suggests the technologyâs true value lies in its potential to facilitate more efficient digital-asset transfers. For example, applications of special interest to the legal community include more efficient document and authorship verification, title transfers, and contract enforcement. Though a regulatory patchwork around virtual currencies has begun to form, its careful analysis reveals much uncertainty with respect to these alternative applications
The Development and Failure of Social Norms in Second Life
This Note analyzes the development and efficacy of social norms in maximizing the welfare of participants in the virtual community of Second Life. Although some of these norms developed appropriately in response to the objectives and purposes of this virtual world, Second Life is so thoroughly steeped in conditions that have impeded the development of successful social norms in other communities that any system of social norms in Second Life will ultimately fail. Because social norms will likely,fail to successfully maximize resident welfare, regulatory schemes imposed both by the operators of the virtual world and by real-world governing institutions are needed to enhance the functioning of this particular alternative reality inhabited by millions
The Development and Failure of Social Norms in Second Life
This Note analyzes the development and efficacy of social norms in maximizing the welfare of participants in the virtual community of Second Life. Although some of these norms developed appropriately in response to the objectives and purposes of this virtual world, Second Life is so thoroughly steeped in conditions that have impeded the development of successful social norms in other communities that any system of social norms in Second Life will ultimately fail. Because social norms will likely,fail to successfully maximize resident welfare, regulatory schemes imposed both by the operators of the virtual world and by real-world governing institutions are needed to enhance the functioning of this particular alternative reality inhabited by millions
$=âŹ=Bitcoin?
Bitcoin (and other virtual currencies) have the potential to revolutionize the way that payments are processed, but only if they become ubiquitous. This Article argues that if virtual currencies are used at that scale, it would pose threats to the stability of the financial systemâthreats that have been largely unexplored to date. Such threats will arise because the ability of a virtual currency to function as money is very fragileâBitcoin can remain money only for so long as people have confidence that bitcoins will be readily accepted by others as a means of payment. Unlike the U.S. dollar, which is backed by both a national government and a central bank, and the euro, which is at least backed by a central bank, there is no institution that can shore up confidence in Bitcoin (or any other virtual currency) in the event of a panic.
This Article explores some regulatory measures that could help address the systemic risks posed by virtual currencies, but argues that the best way to contain those risks is for regulated institutions to out-compete virtual currencies by offering better payment services, thus consigning virtual currencies to a niche role in the economy. This Article therefore concludes by exploring how the distributed ledger technology pioneered by Bitcoin could be adapted to allow regulated entities to provide vastly more efficient payment services for sovereign currency-denominated transactions, while at the same time seeking to avoid concentrating the provision of those payment services within âtoo big to failâ banks
Cryptocurrency functioning in the global economy
The article reveals a conceptual basis of the cryptocurrency functioning. The main types of cryptocurrencies are featured and analyzed as well as their general strengths and weaknesses.
Based on the price dynamics correlation analysis of some cryptocurrency types, a general low level
of dependence between digital assets is established. The main functions of the cryptocurrency are
formulated in the form of transformed money functions. Also, additional functions of cryptocurrencies
are defined on the basis of their innovative nature, as well as the role in the modern financial system
and world economic relations
Learning in the Panopticon: ethical and social issues in building a virtual educational environment
This paper examines ethical and social issues which have proved important when initiating and creating educational spaces within a virtual environment. It focuses on one project, identifying the key decisions made, the barriers to new practice encountered and the impact these had on the project. It demonstrates the importance of the âbackstageâ ethical and social issues involved in the creation of a virtual education community and offers conclusions, and questions, which will inform future research and practice in this area. These ethical issues are considered using Knobelâs framework of front-end, in-process and back-end concerns, and include establishing social practices for the islands, allocating access rights, considering personal safety and supporting researchers appropriately within this contex
(WP 2014-01) Is Bitcoin the \u27Paris Hilton\u27 of the Currency World? Or Are the Early Investors onto Something That Will Make Them Rich? [updated version]
The bitcoin phenomenon, and the technological innovation that made it possible, is interesting - but for investors large and small, the more pertinent question is whether they should buy the digital currency or avoid it. We analyze a bitcoin investment from the standpoint of an investor with a diversified portfolio using both in-sample and out-of-sample settings. Within the in-sample setting, bitcoin does not yield added value to investors with utility function consistent with the mean-variance setting. On the other hand, they do offer diversification benefits to investors with negative exponential and power utility functions. However, these benefits are not preserved in the out-of-sample framework. In most cases, the optimal portfolios that include only the traditional asset classes appear to have superior performance
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