The massive price bubbles of decentralized cryptocurrencies, such as Bitcoin, have created a puzzle for economists. How … pricing. In a controlled laboratory experiment, we observe that the formation of price bubbles can be causally attributed to … mining. Moreover, bubbles are more pronounced if the mining capacity is centralized to a small group of individuals. Analysis …

In this study, a mathematical model of proof-of-work cryptocurrency valuation is developed based on the concepts of … simultaneous equilibria in two mining games, the purchasing power parity in the system of equations of exchange and the network … process payments. The model lays the foundation for rigorous long-term proof-of-work cryptocurrency valuation superior to …

between mining pools, and second, the interdependency between the cryptocurrency price and its transactional benefits, which … is more interdependency between the cryptocurrency price and its services. Empirical evidence from Bitcoin supports our …This paper studies the asset pricing implications of mining pools' concentration. We incorporate two features specific …

This paper is the first to rigorously test commonly cited simplistic theories of cryptocurrency pricing, namely, cost … study reinforces the need for a more sophisticated cryptocurrency valuation framework …

cryptocurrency market outcomes. We theoretically derive an equilibrium relationship between the cryptocurrency price, mining rewards … endogenous - we provide empirical evidence of cryptocurrency price and mining rewards indeed being intrinsically linked to … and mining costs, and blockchain security outcomes. Using daily crypto market data for 2014-2021 and employing the …

an exogenous shock to the electricity supply in a relatively small region with heavy Bitcoin mining activity. We first …Electricity constitutes one of the main input factor for miners of proof-of-work networks like Bitcoin, so they … document a drop of about 24% in the total computing power of the Bitcoin network during a blackout that lasts several days …

This study extends the production--based asset pricing framework into cryptocurrency markets by examining … cryptocurrency miners' optimization. Under q--theory, cryptocurrency miners optimally adjust the supply of cryptocurrencies to … changes in electricity prices. The first–order condition of valuation function infers cryptocurrency returns from miners …