Abstract: Investment is a function of expected profit, which involves calculation of the cost of trust. Blockchain technology is a new institutional technology (Davidson et al 2018) that industrialises trust (Berg et al 2018). We therefore expect that the adoption of blockchain technology into the economy will affect investment and capital structure. Using a broad Austrian economic approach, we examine how blockchain technology will affect the cost of trust, patterns of investment, and economic institutions.
Working paper available at SSRN.
Author(s): Darcy W. E. Allen, Chris Berg, Sinclair Davidson, Jason Potts
Journal: The Review of Austrian Economics
Vol: 34 Year: 2021 Pages: 149–162
DOI: 10.1007/s11138-020-00504-x
Cite: Allen, Darcy W. E., Chris Berg, Sinclair Davidson, and Jason Potts. “Blockchain and Investment: An Austrian Approach.” The Review of Austrian Economics, vol. 34, 2021, pp. 149–162.