Beyond Bitcoin

Over the last few years, we have witnessed an upsurge of enthusiasm about cryptocurrencies and, more generally, the so-called blockchain technology. In this new and updated edition, the authors explore what exactly these new technologies entail and promise. They argue that to understand the potential challenges and further developments in the market, one needs to develop an understanding of what needs these innovations fulfill and what business models are consistent with their use. For that, we need to sufficiently understand both the technology and how it affects the economic forces at play.

This book goes beyond the headlines that say “blockchain will decentralize everything” and provides in-depth, rigorous analysis of what can be effectively decentralized and how this decentralization will work. The book draws not only on the general knowledge of digital currencies and blockchain technologies, but also on recent academic research on the topic. Featuring a fully updated chapter on cryptocurrencies and new chapters on smart contracts and enterprise blockchains, this book is critical reading for those interested in how technology developments impact business and society.

Praise for the first edition:


"Digitization is eating the world, and currencies are not immune from this transformation. Halaburda and Sarvary separate the hype from the reality and provide the grounded explanation of digital and crypto-currencies that has been lacking until now." 

—Erik Brynjolfsson, Director, Initiative on the Digital Economy, Massachusetts Institute of Technology, USA; coauthor, The Second Machine Age

"The book lays out the economic principles that help predict the future of digital currencies. It provides a unique perspective about competition between currencies and the role of digital currencies in platforms. A fascinating read!" 

—Susan Athey, Economics of Technology Professor, Stanford University, USA; John Bates Clark Medalist

"While alternative currencies such as Bitcoin or Litecoin hold the promise of reshaping economic activity and transforming our lives through increased control, security, and a reduction in the costs of carrying transactions, for many, the world of digital currencies remains dark, puzzling, and mystifying. Beyond Bitcoin is a must-read for anyone seeking to understand the simple economics of digital currencies to manage the risks and to take advantage of the opportunities that this quickly evolving phenomenon presents." 

—Ramon Casadesus-Masanell, Herman C. Krannert Professor of Business Administration, Harvard Business School, USA; Co-editor, Journal of Economics & Management Strategy

"We have entered a period of momentous change in the way humans use technology to issue new types of currency and invent new ways of exchange. Beyond Bitcoin is a timely and highly readable book that situates the phenomenon of digital currencies in the wider evolution of money and offers a well-documented, jargon-free analysis that clarifies the ways in which digital currencies differ – but also resemble – traditional currencies. Halaburda and Sarvary's book will be immensely helpful to managers and students who aim to understand the economic forces driving the emergence and success of new currencies." 

—Annabelle Gawer, Associate Professor in Strategy and Innovation, Imperial College Business School, UK; author, Platform Leadership and Platforms, Markets and Innovation

Praise for the second edition:

“Digital currencies and Blockchain technologies have the potential to revolutionize finance and commerce, yet they’re widely misunderstood and overhyped. Halaburda, Sarvary and Haeringer provide a clear-eyed guide to the potential and pitfalls of these technologies in their well-written and carefully-researched book.”

 —Erik Brynjolfsson, the Jerry Yang and Akiko Yamazaki Professor at Stanford, USA and Director of the Digital Economy Lab; co-author of the book Second Machine Age

“While blockchain currencies such as Bitcoin or Ethereum hold the promise of reshaping economic activity and transforming our lives through increased control, security, and a reduction in the costs of carrying transactions, for many, the world of digital currencies and blockchain remains dark, puzzling, and mystifying. Beyond Bitcoin lays out in a clear and concise manner the economics of digital currencies and blockchain technologies, and should be read by anyone seeking to benefit from the opportunities that this quickly evolving phenomenon presents.”

—Ramon Casadesus-Masanell, Professor, Harvard Business School, USA; co-editor, Journal of Economics & Management Strategy

 “Beyond Bitcoin is an instant classic. It demystifies digital currencies and blockchain, and should be required reading for students, managers, investors, and anyone interested in the economics of digital money and these new technologies.”

—Annabelle Gawer, Professor and Director of Center for Digital Economy, University of Surrey, UK; co-author of the book Platform Leadership

“This book is a crystal-clear introduction to the power and potential of cryptocurrency – a must-read for anyone hoping to understand how and why it is changing the world. Halaburda, Sarvary, and Haeringer masterfully situate crypto within the history and economic foundations of money, and explain what makes it so different from previous attempts at digital currency. They then teach how different cryptocurrency platforms such as Bitcoin and Ethereum work. And finally, drawing heavily on their expertise in platform economics and market design, the authors give a glimpse into which crypto applications are likely to be here for the long term – and where the biggest opportunities are.”

—Scott Duke Kominers, MBA Class of 1960 Associate Professor, Harvard Business School; Faculty Affiliate, Department of Economics, Harvard University, USA; columnist, Bloomberg Opinion

Hanna Halaburda is Associate Professor of Technology, Operations and Statistics at the Stern School of Business at New York University, USA. Previously, she was on an assistant professor at Harvard Business School, USA; a visiting scholar at Columbia University, USA; and a senior economist at the Bank of Canada. Her research specializes in the economics of digital currencies, platform competition, and the impact of technology on firms' strategy. 

Miklos Sarvary is the Carson Family Professor of Business at Columbia Business School, USA, where he serves as Faculty Director of the Media and Technology Program. Previously, he was on the faculty at Stanford University, USA; Harvard University, USA; and INSEAD. His research has focused on information and news markets, social network competition and, more recently, online advertising effectiveness.

Guillaume Haeringer is Associate Professor at the Zicklin School of Business at Baruch College, USA. Previously he was visiting faculty at Stanford University, USA; on the faculty at the Universitat Autònoma de Barcelona, Spain; lecturer at the University of Warwick, UK. His research focuses on market design, matching theory, game theory and the economics of cryptocurrencies.