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ZENODO
Preprint . 2025
License: CC BY
Data sources: ZENODO
ZENODO
Preprint . 2025
License: CC BY
Data sources: Datacite
ZENODO
Preprint . 2025
License: CC BY
Data sources: Datacite
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The Structural Unsustainability of Cryptocurrency Why Saturation-Free Money Cannot Stabilize: A Landau-Stuart Analysis

Authors: Ishibashi, Ryuhei;

The Structural Unsustainability of Cryptocurrency Why Saturation-Free Money Cannot Stabilize: A Landau-Stuart Analysis

Abstract

Cryptocurrency was designed to eliminate the constraints of traditional finance: central bank control, governmentregulation, inflation, and capital controls. This paper argues that these 'constraints' were saturation mechanisms thatprovided stability. By systematically eliminating them, cryptocurrency has created a saturation-free monetarysystem (β X 0) that is structurally incapable of price stability.Using the Landau-Stuart framework, we analyze how each design feature of cryptocurrency̶fixed supply,decentralization, censorship resistance, 24/7 trading, HODL culture̶removes a stabilizing mechanism present intraditional finance. The result is extreme volatility: not a bug but an inevitable consequence of the designphilosophy. We extend the analysis to stablecoins (borrowed β), DeFi (negative β), and Proof-of-Work energyconsumption (saturation-free resource extraction). We conclude that cryptocurrency faces a fundamental dilemma:adding saturation mechanisms would provide stability but contradict the libertarian design philosophy that givescryptocurrency its appeal. Cryptocurrency cannot be both free and stable.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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