학회소식
[2020년 제 5차] From Hotelling to Nakamoto: The Economic Meaning of Bitcoin Mining
작성자 : 관리자
조회수 : 48
게시일 :
2020-12-11
We develop a continuous-time dynamic model for Bitcoin mining from the miners’ perspective
by borrowing idea of the classic Hotelling model for exhaustible resources. The model
is rich enough to incorporate declining Bitcoin rewards and random transaction fees as well
as inventory and demand levels, and is able to calibrate to empirical data. We find that high
jump risk and transaction fees are major forces driving miners to reduce their inventory even
when Bitcoin prices are quite low or very volatile. Our model can also explain why the average
transaction fee rate stays flat from 2014 to 2016 and increases dramatically in 2017.
