Exploring the relationship between Bitcoin price and network's hashrate within endogenous system

【Author】 Kubal, Jan; Kristoufek, Ladislav

【Source】INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS

【影响因子】8.235

【Abstract】Bitcoin pricing mechanism is a complex system of interactions between factors that are not standard for traditional financial assets. Its understanding is essential for assessing specific topics, most prominently the interaction between Bitcoin price and network's hashrate as it directly translates into its power demand and consumption and thus also environmental implications. We examine an intertwined system of equations, controlling for various statistical caveats connected to such system, providing a coherent picture of the system dynamics and thus delivering the most rigorous and complex approach in explaining the pricing dynamics of the Bitcoin system up to date. We shown that the whole system is very well structured and delivers economically and logically sound results, pointing at the network security narrative in the Bitcoin price-hashrate nexus.

【Keywords】Bitcoin; Mining; Cryptocurrency; Cryptoassets; Pricing

【发表时间】2022 NOV

【收录时间】2022-10-31

【文献类型】实证数据

【主题类别】

区块链治理-市场治理-价格预测