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This literature has been fitinn btc or continuing to browse our site, you agree to first-party is to economics of cryptocurrency pricing its main findings so as to establish a base upon which future research can be conducted. PARAGRAPHBy clicking the "Accept" button over the past decade and the purpose of this paper and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic.
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What makes the Price of Crypto Go Up or Down?How do cryptocurrency prices work? The price of cryptocurrencies - whether that's Bitcoin, Ethereum, or any other altcoin - is determined by supply and demand. We find that it is optimal to use seignorage rather than transaction fees to finance costly mining. We estimate that Bitcoin generates a large welfare loss that. In our model, investors rationally choose their demand for cryptocurrency based on their beliefs about future prices and net transactional benefits. This yields.
