Abstract

This paper predicts the decision of financial analysts and the government regarding making a cryptocurrency investment decision using a mathematical approach in the game theory and linear programming solved by a simplex algorithm, the approach is based on the challenges in the market of cryptocurrencies related to the accounting and economic issues, and also related to the unethical actions in the trading of cryptocurrencies. The challenges are the inputs to the mathematical approach, where I assign weights for the importance of each variable of the challenges in a payoff matrix that affects the game between the financial analysts and the government. Based on the accounting, economic, and unethical challenges, the mathematical results of the game show pessimistic predictions for cryptocurrencies trading and usage in the future, where it predicts that financial analysts’ best decision is not to invest in cryptocurrencies, and the government’s best decision is not to encourage investment in cryptocurrencies. This paper encourages future research to study cost-effective analysis of investing in cryptocurrencies, calculate the gain from investing in cryptocurrencies compared to costs, consider the competitive advantages for financial instruments compared to the cryptocurrencies’, the solution to the accounting, economic, and unethical problems, and the government’s regulations. Therefore, schools of business should include a subject for educating cryptocurrencies and its issues to undergraduate and postgraduate learners. Future research if optimistically predicts the future of cryptocurrencies, would benefit the new generation to keep on and find good opportunities for investments and new jobs, and in the meantime protect the economies.

Keywords: Financial analysts, Cryptocurrencies investment decisions, Game theory, Linear programming, Accounting issues, Economic issues, Unethical issues