Risks of Cryptocurrencies

TitleRisks of Cryptocurrencies
Publication TypeJournal Article
Year of Publication2018
AuthorsWeaver, N.
Published inCommunications of the ACM
Date Published06/2018

Cryptocurrencies, although a seemingly interesting idea, are simply not fit for purpose. They do not work as currencies, they are grossly inefficient, and they are not meaningfully distributed in terms of trust. Risks involving cryptocurrencies occur in four major areas: technical risks to participants, economic risks to participants, systemic risks to the cryptocurrency ecosystem, and societal risks. Fortunately, for all but the last case, there is little risk to anyone not directly participating


Nicholas Weaver wishes to thank Steve Bellovin for his constructive shepherding of this column.

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Networking and Security