Adaptation of Marxian Economic Theory in Digital Currency System Based on Blockchain Technology

Abstract

Abstract This paper analyzes the current status of digital currency trading in terms of volume, price, and quantity in circulation and compares the statistical descriptions of Bitcoin, Dogecoin, and Ether to illustrate whether cryptocurrencies have the potential to be Marxist world currencies by observing the price volatility and the size of the trading volume. Introducing Bitcoin as a commodity, the relationship between risk volatility, capital control, capital flight, and the Bitcoin premium is mechanistically portrayed. The existence of bitcoin-channeled capital flight is argued based on typical facts and empirical evidence. The results show that as of November 25, 2023, Bitcoin’s single-day volume is about $64 trillion, the highest market share among more than 2,000 currencies in the world. Its single price is volatile, with a high of about $4,500 and a low of about $7. The price of Dogecoin and Ether can fluctuate between 56% and 489%. The Marxist definition of a world currency excludes digital currencies. BTC doesn’t fully align with ECNY, there’s a possibility of a Bitcoin premium, and there’s also a risk of capital flight. Therefore, an adaptive analysis of digital currencies based on blockchain technology based on Marxian monetary and economic theories can provide a clear understanding of the nature of money and monetary functions.