Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 7, 2021 erstellt
Beschreibung:
We propose a unified dynamic framework to study the economics of the supply side of bitcoin mining, such as endogenous transaction fees, the miners' liquidation policies, and endogenous inventory holdings, in the face of declining system block rewards and stochastic demand. The model yields two economic insights: First, high jump risk and transaction fees income can be major forces driving miners to significantly reduce their inventory even when bitcoin prices are relatively low. Second, the model explains the observed co-movements of average transaction fees, average block sizes, and Bitcoin prices