Publication detail

Kubal, J. & Kristoufek, L.: Exploring the relationship between Bitcoin price and network’s hashrate within endogenous system

Author(s): prof. PhDr. Ladislav Krištoufek Ph.D., Kubal, Jan
Type: Articles in journals with impact factor
Year: 2022
Number: 0
ISSN / ISBN:
Published in: International Review of Financial Analysis 84:102375 PDF
Publishing place:
Keywords: Bitcoin, mining, cryptocurrency, cryptoassets, pricing
JEL codes:
Suggested Citation:
Abstract: Bitcoin pricing mechanism is a complex system of interactions between factors that are not standard for traditional financial assets. Its understanding is essential for assessing specific topics, most prominently the interaction between Bitcoin price and network’s hashrate as it directly translates into its power demand and consumption and thus also environmental implications. We examine an intertwined system of equations, controlling for various statistical caveats connected to such system, providing a coherent picture of the system dynamics and thus delivering the most rigorous and complex approach in explaining the pricing dynamics of the Bitcoin system up to date. We shown that the whole system is very well structured and delivers economically and logically sound results, pointing at the network security narrative in the Bitcoin price-hashrate nexus.
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