FØS8120 Digital Money for the Future

Contents and structure

The course provides a basic introduction to Bitcoin, the underlying blockchain technology and the place of cryptocurrency in the national and international monetary system.

Bitcoin has opened up new opportunities in the digital economy and the course will give students an understanding of the link between technology, economics and social sciences. Bitcoin, and other cryptocurrencies, must be understood in an interdisciplinary manner and in the light of the mentioned areas. The course will also give students an understanding of the special and crucial role of cryptocurrency in blockchain technology.

There is no requirement for prior knowledge in technology and economics to be able to take this course. The course is adapted to employees in the financial sector and is based on the experiences the students have from their work in banking and finance.

After completing the course, students will understand how Bitcoin is structured and works and thus gain a basic understanding of all blockchain technology. The course will give students confidence to give advice to customers in matters of cryptocurrency.

Content

• Introduction to cryptocurrencies with an emphasis on Bitcoin
• Monetary history
• Development of digital payment system, before and after Bitcoin
• Characteristic features of decentralized and central IT solutions
• Bitcoin Consensus Model (Nakamoto Consensus)
• Block chain technology
• Use of Bitcoin and other cryptocurrencies
• Regulation of Bitcoin and cryptocurrencies
• Anonymity, pseudonymity and privacy
• Bitcoin as a platform for other services
• Alternative cryptocurrencies ("altcoins") and the universe of cryptocurrencies
• Ethereum and smart contracts
• Bitcoin, blockchain and future use and development
• Blockchain technology as a basis for digital central bank money
• Bitcoin as a payment system (The Lightning Network)
• Cryptocurrency as a basis for new financing models
• Bitcoin and monetary policy management
• Bitcoin as an object of investment and speculation
• Bitcoin as a global phenomenon and as an alternative to the unbanked and underbanked

Learning Outcome

Knowledge

The student must:

• Understand the development of money in a historical perspective
• Understand the background of Bitcoin, Bitcoin as a precursor to other cryptocurrencies and Bitcoin as a classic example of an innovation
• Understand how Bitcoin works and what gives this cryptocurrency value
• Understand Bitcoin and cryptocurrencies as money, both function and properties, and also what is missing to be full-fledged money
• Understand the interplay between technology, economics and social conditions in cryptocurrencies
• Understand the potential of technology as a platform and possible infrastructure for new services
• Discuss how cryptocurrency affects traditional financial services now and in the future
• Be able to advise others on the use of Bitcoin and other cryptocurrencies and explain how they work
• Understand the difference between cryptocurrencies, stablecoins, fiat money and digital central bank money (CBDC)
• Understand privacy challenges when transitioning to a cashless society
• Understand the difference between open and controlled blockchains
• Understand payment solutions like Lightning Network and how it relates to Bitcoin
• Understand what makes Ethereum special in relation to Bitcoin
• Understand the risks of various investments in, and the use of, cryptocurrencies
• Understand how Bitcoin and cryptocurrencies are regulated (tax and utility)
• Understand the monetary policy challenges associated with the emergence of cryptocurrencies
• Understand the relationship between energy use and security in Bitcoin, and learn about other consensus methods

Skills

The student must

• Be able to use a bitcoin wallet and understand how to switch between bitcoin and "regular" money (fiat money), and between different types of cryptocurrencies
• Be able to use online resources to interpret the activity of a blockchain, track bitcoin payments and understand the process of a bitcoin transaction
• Distinguish between anonymity and pseudonymity and know which technology offers one or the otherBe able to explain how Bitcoin and similar cryptocurrencies work, and what distinguishes them from fiat money

General competence

The student must

• Be able to follow the public debate related to the use of cryptocurrencies
• Have enough knowledge to understand the risks of investing in cryptocurrencies
• Understand blockchain technology and cryptocurrency so that he and she can become an important resource in such issues in working life
• Be able to distinguish between myths and facts about Bitcoin and cryptocurrencies

Entry requirements

 

Recommended previous knowledge

Working xperience from the financial sector is beneficial.

Teaching methods

Digital lectures, physical gathering, assignements.

Compulsory learning activities

Mandatory assignements

Assessment

Digital home exam, passed/fail grading.

Examination support material

All resources allowed.

More about examination support material

Course reductions

• BØA101 - Bitcoin, blokkjedeteknologi og den digitale økonomien - Reduction: 7.5 studypoints