The massive price bubbles of decentralized cryptocurrencies, such as Bitcoin, have created a puzzle for economists. How … pricing. In a controlled laboratory experiment, we observe that the formation of price bubbles can be causally attributed to … mining. Moreover, bubbles are more pronounced if the mining capacity is centralized to a small group of individuals. Analysis …

This paper deals with cryptocurrency bubbles. First, it points out that a number of recent papers on cryptocurrency … presence of cryptocurrency bubbles or the fundamental value of cryptocurrencies is needless. Second, the paper conducts a short … bubbles are awed due to an insufficient consideration of the fundamental value of cryptocurrencies. As even fiat money is said …

cryptocurrency market outcomes. We theoretically derive an equilibrium relationship between the cryptocurrency price, mining rewards … endogenous - we provide empirical evidence of cryptocurrency price and mining rewards indeed being intrinsically linked to … and mining costs, and blockchain security outcomes. Using daily crypto market data for 2014-2021 and employing the …

by Bitcoin to market-oriented application scenarios. To shed light on the technology's usage in markets with asymmetric …

results suggest that cryptocurrency markets rely on regulated financial institutions to operate and that these markets are …

limited liability investors contribute to asset price bubbles by increasing liquidity provision and that caps fail to tame … bubbles. Overall, giving investors skin in the game fosters financial stability. …

We investigate the relationship between anchoring and the emergence of bubbles in experimental asset markets. We show … significantly reduce bubbles in laboratory asset markets. If no FV-anchor is set, bubble-crash patterns emerge. Our results indicate … that bubbles in laboratory environments are primarily sparked in the first period. If prices are initiated around the FV …

We investigate the relationship between anchoring and the emergence of bubbles in experimental asset markets. We show … significantly reduce bubbles in laboratory asset markets. If no FV-anchor is set, bubble-crash patterns emerge. Our results indicate … that bubbles in laboratory environments are primarily sparked in the first period. If prices are initiated around the FV …

investment strategies applied to Bitcoin. Our bubble model is defined as a geometric Brownian motion combined with separate crash … (and rally) discrete jump distributions associated with positive (and negative) bubbles. The RE condition implies that the …-free asset. Using our bubble model on Bitcoin from 8-Jul-2013 until 19-Dec-2017 would have generated a CAGR of 140% with a …