On the Value of Virtual Currencies

@article{Bolt2016OnTV,
  title={On the Value of Virtual Currencies},
  author={W. Bolt and Maarten R.C. van Oordt},
  journal={ERN: Asset Pricing Models (Topic)},
  year={2016}
}
This paper develops an economic framework to analyze the exchange rate of virtual currency. Three components are important. First, the actual use of virtual currency to make payments. Second, the decision of forward-looking investors to buy virtual currency (thereby effectively regulating its supply). Third, the elements that jointly drive future consumer adoption and merchant acceptance of virtual currency. The model predicts that, as virtual currency becomes more established, the exchange… Expand
1 Citations
The Price of a Digital Currency

References

SHOWING 1-10 OF 36 REFERENCES
On the indeterminacy of equilibrium exchange rates
The Economics of Bitcoin and Similar Private Digital Currencies
Residual Risk, Trading Costs, and Commodity Futures Risk Premia
Synthetic Commodity Money
Is Bitcoin a Real Currency? An Economic Appraisal
The Economics of Digital Currencies
The "Buffer Stock" Notion in Monetary Economics
Two-sided markets: a progress report
...
1
2
3
4
...