The lecture by Ladislav Kristoufek from Charles University Prague will take place at the Complexity Science Hub Vienna in Room 201.
If you are interested in participating, please email to office@csh.ac.at.
Abstract
As for any financial asset, Bitcoin price comprises two parts – speculative and fundamental. The former has been quite deeply studied in the literature but the latter is still quite lacking. In the lecture, the author’s historical Bitcoin papers will be quickly recalled but mainly the two new avenues of research into the fundamental price of Bitcoin will be presented. Firstly, the focus will be put on utilizing two traditional economic laws – law of one price and quantity theory of money – in the context of Bitcoin (and cryptocurrencies in general). And second, results on the equilibrium dynamics between Bitcoin price, its mining costs and electricity prices will be discussed. Overall, it will be argued that the fundamental part of Bitcoin price is not as elusive as sometimes presented.