Cryptocurrencies

What is the Bitcoin’s Risk-Free Interest Rate?

7.February 2020

Some see Bitcoin (BTC) as a payment method of the future; others see it as a speculative asset class. Despite the speculative activity connected with Bitcoin, after all, it is a currency that is different from fiat currencies like the US Dollar or Euro. If you hold fiat currency, there is an opportunity to earn a risk-free rate. But is there the same opportunity also in Bitcoin? And what are the Bitcoin’s risk-free and market rates? These are the questions we had in Quantpedia, and we invite you to join us in our thought experiment that tries to answer them …

Authors:Vojtko, Padysak

Title: What is the Bitcoin’s Risk-Free Interest Rate?

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Metcalfe’s Law in Bitcoin

12.August 2019

Cryptocurrencies are a new asset class, and researchers have just started to understand better fundamental forces which are behind their price action. A new research paper shows that Bitcoin’s price can be modeled by Metcalfe’s Law. Bitcoin (and other cryptocurrencies) are in this characteristic very similar to Facebook as their value depends on the number of active users – network size

Authors: Peterson

Title: Bitcoin Spreads Like a Virus

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