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From Commodity to Fiat and Now to Crypto : What Does History Tell Us?

Eichengreen, Barry - 2019

functions of money. So-called stable coins are intended to bridge this gap, but whether they can be successfully scaled up and …

Persistent link: https://www.econbiz.de/10012895472

Central Bank Digital Currency : Central Banking for All?

Fernández-Villaverde, Jesús - 2020

The introduction of a central bank digital currency (CBDC) allows the central bank to engage in large-scale intermediation by competing with private financial intermediaries for deposits. Yet, since a central bank is not an investment expert, it cannot invest in long-term projects itself, but...

Persistent link: https://www.econbiz.de/10012841420

The Digital Privacy Paradox : Small Money, Small Costs, Small Talk

Athey, Susan - 2017

'Notice and Choice' has been a mainstay of policies designed to safeguard consumer privacy. This paper investigates distortions in consumer behavior when faced with notice and choice which may limit the ability of consumers to safeguard their privacy using field experiment data from the MIT...

Persistent link: https://www.econbiz.de/10012954461

Blockchain Economics

Abadi, Joseph - 2018

When is record-keeping better arranged through a blockchain than through a traditional centralized intermediary? The ideal qualities of any record-keeping system are (i) correctness, (ii) decentralization, and (iii) cost efficiency. We point out a blockchain trilemma: no ledger can satisfy all...

Persistent link: https://www.econbiz.de/10012906268

Decentralized Mining in Centralized Pools

Cong, Lin William - 2019

evidence from Bitcoin mining supports our model predictions. The economic insights inform many other blockchain protocols as …

Persistent link: https://www.econbiz.de/10012891776

Some Simple Economics of the Blockchain

Catalini, Christian - 2016

We build on economic theory to discuss how blockchain technology can shape innovation and competition in digital platforms. We identify two key costs affected by the technology: the cost of verification and the cost of networking. The cost of verification relates to the ability to cheaply verify...

Persistent link: https://www.econbiz.de/10012977267

Some Simple Bitcoin Economics

Schilling, Linda - 2018

In a novel model of an endowment economy, we analyze coexistence and competition between traditional fiat money (Dollar …) and another intrinsically worthless medium of exchange, not controlled by a central bank, such as Bitcoin. Agents can … inflation target, while Bitcoin mining is decentralized via proof-of-work. We analyze Bitcoin price evolution and interaction …

Persistent link: https://www.econbiz.de/10012922218

Initial Coin Offerings and the Value of Crypto Tokens

Catalini, Christian - 2018

This paper explores how entrepreneurs can use initial coin offerings — whereby they issue crypto tokens and commit to only accept those tokens as payment for their products — to fund venture start-up costs. We show that the ICO mechanism allows entrepreneurs to generate buyer competition for...

Persistent link: https://www.econbiz.de/10012924464

Market Structure in Bitcoin Mining

Ma, June - 2018

We analyze the Bitcoin protocol for electronic peer-to-peer payments and the operations that support the “blockchain … reward to mining. The endogenous level of computational difficulty built into the Bitcoin protocol does not mitigate this …

Persistent link: https://www.econbiz.de/10012929014

Tokenomics : Dynamic Adoption and Valuation

Cong, Lin William; Li, Ye; Wang, Neng - 2021

We develop a dynamic asset-pricing model of cryptocurrencies/tokens that allow users to conduct peer-to-peer transactions on digital platforms. The equilibrium value of tokens is determined by aggregating heterogeneous users' transactional demand rather than discounting cashflows as in standard...

Persistent link: https://www.econbiz.de/10013314305