Is bitcoin a waste of resources?

Abstract

Do Bitcoin and other cryptocurrencies play a useful social role, or do they represent a social waste? Bitcoin is a decentralized recordkeeping system, with updating of the record of transactions in the blockchain. Potentially, Bitcoin could be useful if it is widely used as a means of payment or as a safe-haven asset. But, given its properties, it is an inefficient and poorly designed means of payment and probably cannot survive as a safe haven asset. Bitcoin could encourage crime, which is a further social cost, but fortunately it may not serve criminals well either. (JEL G23, E50, E59).