Chiu, Jonathan; Koeppl, Thorsten V. - 2017 - This version: September, 2017
How well can a cryptocurrency serve as a means of payment? We study the optimal design of cryptocurrencies and assess … quantitatively how well such currencies can support bilateral trade. The challenge for cryptocurrencies is to overcome double … fees to finance mining rewards. We also point out that cryptocurrencies can potentially challenge retail payment systems …