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

In deanfantazzini/bitcoinFinance: Quantitative Finance with Cryptocurrencies

Compute the bitcoin lower bound with web-delivered inputs

Description

This function computes the bitcoin lower bound with (some) inputs taken from the web

Usage

btc.lower.bound.web(
  block.reward = 6.25,
  hashing.power.miner = 10^12,
  W.GHs = 0.05,
  price.kWh = 0.125
)

Arguments

block.reward	is the block reward (currently 6.25 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.
W.GHs	is the energy consumption efficiency of the producer’s hardware expressed in W per GH/s
price.kWh	is the $electricity price per kWh in dollars

Details

This function computes the bitcoin lower bound with some inputs taken from the web: a) the latest difficulty (expressed in units of GH/block), b) the electricity price per kWh in dollars (given by the latest US average retail price - residential sector)

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.

Examples

## Not run: 
 library(Quandl)
 Quandl.api_key("DCpZeg_N-eAzV7aDZs6C")
 btc.lower.bound.web(W.GHs=0.04)
 
## End(Not run)

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