Jiasun Li
George Mason University

Abstract:
Money traditionally serves both as a medium of exchange and a store of value. We argue that cryptocurrencies such as Bitcoin, however, are difficult to serve both roles. This is because how well a cryptoasset functions as a store of value depends on how secure the system is, which in turn relies on how well compensated miners are. In order to have a secure store of value blockchain, mining reward has to be so high that prevents it from being an affortable medium of exchange. Fiat currencies, which do not feature throughput limits as cryptoassets, do not have this problem. As a consequence, multiple cryptoasset systems are required to provide comprehensive monetary functionality, in the form of altcoins, or layered solutions (e.g. lightening). We also discuss implications for smart contract platforms.

Jiasun Li is an assistant professor of finance at George Mason University. His current research interest is in blockchain technologies and FinTech applications. His research papers analyze how ICOs create economic value at the presence of network effects, the industrial organization of mining pools and implications for blockchain (de-)centralization, and the security design for investment crowdfunding to harness the wisdom of the crowd. He has also studied the role of information in theory of the firm and market microstructure. Dr. Li has presented his research at many institutions and conferences including MIT, NYU, Yale, NBER, the Fed, and the SEC. He is a winner of 2016 Yihong Xia Best paper award and 2014 Chicago Quantitative Alliance academic paper competition. Dr. Li received his Ph.D in finance from UCLA Anderson School of Management and B.S. in mathematics from Fudan University (Shanghai, China) prior to joining George Mason.

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Venue
Department of Management, Economics and Industrial Engineering
Building B26/B – Room 0.1 – ground floor
Via Lambruschini 4/B, Milano