Vol. 11 (2015)
On Monopolistic Practices In Bitcoin: A Coded Solution: A Coded Solution
Sanya Samtani, Varun Baliga
The underlying values inherent in the creation of bitcoins are those of decentralization and accessibility. The horizontal power structure is an integral part of bitcoins’ architecture – this paper seeks to find a feasible alternative to status quo in order to preserve these characteristics. First, we look at the harms of monopolies and how the concentration of bitcoins is exceptionally harmful to its continued existence. Second, we expose the inadequacies of the existing regulatory frameworks, and discuss how status quo militates against the foundational ideology of bitcoin as a non-institutional cryptocurrency. Third, we undertake a comparative study of the existing regulatory regimes to identify legal and regulatory issues surrounding bitcoins. Finally, we propose a solution to the concern of centralization by discussing the relationship between law, code and the market, and discussing existing coded solutions that may be further improved upon to prevent such monopoly
Sanya Samtani is a BCL candidate at the University of Oxford and Varun Baliga is a V Year
student at NALSAR University of Law.