Bitcoin and Beyond

Annual Review of Financial Economics, Volume 14, 2022, Pages 95 - 115

26 Pages Posted: 2 Nov 2021 Last revised: 21 Feb 2023

See all articles by Kose John

Kose John

New York University (NYU) - Leonard N. Stern School of Business

Maureen O'Hara

Cornell University - Samuel Curtis Johnson Graduate School of Management

Fahad Saleh

University of Florida

Multiple version iconThere are 2 versions of this paper

Date Written: November 1, 2021

Abstract

We survey extant literature on the economics of blockchain fundamentals with particular focus on Bitcoin, Proof-of-Work and Proof-of-Stake. We formally clarify Bitcoin’s economic significance in solving the double-spending problem without a centralized entity. We then transition to the economics literature, highlighting the key endogenous economic interactions among participants in the Bitcoin ecosystem as well as the economics of Proof-of-Stake and other potential consensus algorithms. Along the way, we discuss various literature that provides important insights regarding fees, forks and price volatility. We conclude by reflecting on the next generation of blockchain innovations.

Keywords: blockchain, bitcoin, fees, proof-of-work, proof-of-stake

JEL Classification: G00, O30

Suggested Citation

John, Kose and O'Hara, Maureen and Saleh, Fahad, Bitcoin and Beyond (November 1, 2021). Annual Review of Financial Economics, Volume 14, 2022, Pages 95 - 115, Available at SSRN: https://ssrn.com/abstract=3954429

Kose John

New York University (NYU) - Leonard N. Stern School of Business ( email )

Maureen O'Hara

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

Ithaca, NY 14853
United States
607-255-3645 (Phone)
607-255-5993 (Fax)

Fahad Saleh (Contact Author)

University of Florida ( email )

Warrington College of Business
Gainesville, FL 32611
United States

HOME PAGE: http://www.fahadsaleh.com

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