On the transaction cost of Bitcoin

【Author】 Kim, Thomas

【Source】FINANCE RESEARCH LETTERS

【影响因子】9.848

【Abstract】Using a unique data on Bitcoin quotes in 16 different currencies, this paper examines the empirical transaction costs of Bitcoin in international transactions. We find that the transaction cost of Bitcoin is lower than that of retail foreign exchange markets. Bitcoin markets have, on average, 2% narrower bid-ask spreads than retail foreign exchange markets and, when the U.S. dollar is converted to other currencies via Bitcoin, the resulting exchange rates are, on average, 5% better than the retail foreign exchange rate. We find that Bitcoin's simpler infrastructure is a source of the cost advantage. (c) 2017 Elsevier Inc. All rights reserved.

【Keywords】Bitcoin; Foreign exchange; Transaction cost; Digital currency; International fund transfer

【发表时间】2017 NOV

【收录时间】2022-01-02

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