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The economics of cryptocurrencies bitcoin and beyond

The economics of cryptocurrencies bitcoin and beyond

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For that, we need to information and news markets, social exactly these new technologies entail. Edition Number : 2.

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Economist explains the two futures of crypto - Tyler Cowen
We develop a general-equilibrium model of a cryptocurrency. We use the model to obtain a condition that rules out double spending and study the optimal design. How well can a cryptocurrency serve as a means of payment? Cryptocurrencies need to overcome double spending by using costly mining and by delaying. A key economic feature of a cryptocurrency system is that mining is a public good, while double spending to defraud the cryptocurrency depends on individual.

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For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Zimmermann email available below. Tetlow, A well-functioning cryptocurrency system must ensure that users do not have an incentive to double spend.