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More and more companies start offering digital payment systems. Smartphones evolve to a digital wallet such that it seems like we are about to enter the era of digital finance. In fact we are already inside an digital economy. The market of e-x (x = "finance", "money", "book", you name it . . ....
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This paper develops a microeconomic model of bitcoin production to analyze the economic effects of the Bitcoin protocol …. I view the bitcoin as a tradable commodity that is produced by miners and whose supply is managed by the protocol. The … findings show that bitcoin's volatile price path and inefficiency are related, and that both are a consequence of the protocol …
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