Is it worth to hold bitcoin?

【Author】 Kim, S. Thomas

【Source】FINANCE RESEARCH LETTERS

【影响因子】9.848

【Abstract】This study examines if holding Bitcoin provides any benefit other than potential price appreci-ation. An estimation using the convenience yield term in the Cost-of-Carry model shows that the Bitcoin spot contract has a 5.4% premium compared to the futures contract, indicating a holding benefit. Short-selling restrictions in Bitcoin spot markets and voting rights are the sources of the premium. The short-selling restrictions make spot prices be downward sticky. The value of voting rights becomes more observable whenever a ballot is likely. When an important proposal is made to the Bitcoin network, the holding benefit increases by an additional 5.6%.

【Keywords】Bitcoin valuation; Bitcoin; Cryptocurrency; Bitcoin futures; Convenience yield; Holding benefit

【发表时间】2022 JAN

【收录时间】2022-01-18

【文献类型】期刊

【主题类别】

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