The Decision to Produce Altcoins

Adam Hayes
Written By SCEPA

WORKING PAPER

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A model is developed in this paper to formalize this process where cryptocurrency miners seeking to maximize production in terms of bitcoins earned in a day will exploit any such opportunities.

Altcoins are produced by miners and subsequently offered for sale in the market in order to obtain bitcoins; meanwhile noise traders serve as the only bid-side to the market, on average.

SCEPA
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