btc.lower.bound.user: Compute the bitcoin lower bound with user-delivered inputs

In deanfantazzini/bitcoinFinance: Quantitative Finance with Cryptocurrencies

Compute the bitcoin lower bound with user-delivered inputs

Description

This function computes the bitcoin lower bound with inputs given by the user and not taken from the web

Usage

btc.lower.bound.user(
  block.reward = 12.5,
  hashing.power.miner = 10^12,
  Difficulty = 559970892890,
  price.kWh = 0.125,
  W.GHs = 0.25
)

Arguments

block.reward	is the block reward (currently 12.5 BTC/block)
hashing.power.miner	is the hashing power employed by a miner. Hayes (2017) sets this value to 1000 GH/s even though the actual hashing power of a miner is likely to deviate greatly from this value.
Difficulty	is the difficulty which is expressed in units of GH/block
price.kWh	is the $electricity price per kWh in dollars
W.GHs	is the energy consumption efficiency of the producer’s hardware expressed in W per GH/s

Details

This function computes the bitcoin lower bound with inputs given by the user

Value

price.bitcoin is the bitcoin lower bound

References

Hayes, A. S. (2017). Cryptocurrency Value Formation: An empirical study leading to a cost of production model for valuing Bitcoin. Telematics and Informatics, forthcoming.

Fantazzini, D., Nigmatullin, E., Sukhanovskaya, V., Ivliev, S., (2016) Everything you always wanted to know about bitcoin modelling but were afraid to ask. Part 1. Applied Econometrics, 44, 5-24.

Examples

#This reproduces the example in Fantazzini et al. (2016)
 btc.lower.bound.user(Difficulty=60883825480, price.kWh=0.135,W.GHs=0.75)
 #  588.3616

deanfantazzini/bitcoinFinance documentation built on June 12, 2024, 4:10 p.m.