How to Design Cryptocurrency Value and How to Secure Its Sustainability in the Market

Round 1

Reviewer 1 Report

This paper gives a goo verbal overview of important aspects of crypto currency design.

Author Response

Point 1. Abstract modification

The purpose of this study is to analyze the contents of cryptocurrency value design based on the case of adapting to the current market. It is also intended to provide a method of issuing before creation and an operation method after creation when designing a cryptocurrency.

Point 2. After reading the whole text again, I corrected the wrong spelling.

block chain --> blockchain

Point 3.  Some contents has been changed ; table 3, bitcoin area change

o Fixed maximum issuance

- Gold is supplied to the market according to the amount of mined, and the world's gold production increases by about 2% every year.

- In the case of gold, the amount of growth is small, so the impact on the market is insignificant. It can be considered that gold issuance is fixed.

 

Reviewer 2 Report

The article covers an important and timely topic what conditions must be met by the cryptocurrency in order to establish and stay on the market. The authors describe the most important cryptocurrencies available on the market.

The article contains relevant information and interesting insights, but it is difficult to read. The authors should avoid using very long sentences, like 1st in the abstract.

In the features that the cryptocurrency should have, the authors did not mention so called: the blockchain trilemma. It is hard to get at the same time cryptocurrency which is decentralized, scalable, and secure. For example Bitcoin is decentralzied and secure but poorly scalable.

Another measure that can be used to evaluate the adoption of a given cryptocurrency is its of trading frequency on exchanges and the statistical properties of price fluctuations behind it. See recent Cracow group paper - 'Multiscale characteristics of the emerging global cryptocurrency market' Physics Reports 901, (2021)

Minor issues:

In table 3 "Supply in proportion to the amount of gold mined: World supply increases by 2% of gold production annually" does not reffer to any cryptocurrency?

Information about Ethereum in table 4 is outdated. Ethereum 2.0 already switched from PoW to PoS.

The authors should provide more references to the statements in the article. Fore example "According to CNN news, what Venezuelans want is actually dollars rather than 315 Bitcoin." there should be link to the webpage containing this information. The reference should also be found in the place where there is information about Medibloc and other cryptocurrencies.

Author Response

Point 1: The article contains relevant information and interesting insights, but it is difficult to read. The authors should avoid using very long sentences, like 1st in the abstract.


 

Response 1: The purpose of this study is to analyze the contents of cryptocurrency value design based on the case of adapting to the current market. It is also intended to provide a method of issuing before creation and an operation method after creation when designing a cryptocurrency

 

Point 2: In the features that the cryptocurrency should have, the authors did not mention so called: the blockchain trilemma. It is hard to get at the same time cryptocurrency which is decentralized, scalable, and secure. For example Bitcoin is decentralzied and secure but poorly scalable.

 

Response 2: I totally agree with your openion. However, I did not touch this area in this paper and this will be considered as a future work.

 

Point 3. Another measure that can be used to evaluate the adoption of a given cryptocurrency is its of trading frequency on exchanges and the statistical properties of price fluctuations behind it. See recent Cracow group paper - 'Multiscale characteristics of the emerging global cryptocurrency market' Physics Reports 901, (2021)

Response 3: Thank you for giving us ideas for future research. I plan to proceed with future research on this part.

 

Point 4. In table 3 "Supply in proportion to the amount of gold mined: World supply increases by 2% of gold production annually" does not refer to any cryptocurrency?

Response 4:  The modification is as follows.

o Fixed maximum issuance.

- Gold is supplied to the market according to the amount of mined, and the world's gold production increases by about 2% every year.

- In the case of gold, the amount of growth is small, so the impact on the market is insignificant. It can be considered that gold issuance is fixed.

 

Point 5. Information about Ethereum in table 4 is outdated. Ethereum 2.0 already switched from PoW to PoS.

Response 5:  The modification is as follows.

A type of con-sensus mecha-nism by which a cryptocurrency blockchain net-work achieves distributed con-sensus

 

Point 6. The authors should provide more references to the statements in the article. Fore example "According to CNN news, what Venezuelans want is actually dollars rather than 315 Bitcoin." there should be link to the webpage containing this information. The reference should also be found in the place where there is information about Medibloc and other cryptocurrencies.

 

Response 6:  The website link address has been added to the references.

[16] https://www.hebergementwebs.com/blockchain/current-crisis-sparks-crypto-awakening-in-developing-countries

[17] https://kr.investing.com/crypto/medibloc

Author Response File: Author Response.docx