2 years ago
What Drives Bitcoin Fees? Using Segwit to Assess Bitcoin's Long-Run Sustainability
Bitcoin is a decentralized payment system: a central institution to verify and settle transactions does not exist. What drives the transaction fees in this system? Can it remain tamper proof in the long run? We develop an empirical model to study how the demand for bitcoin influences transaction fees. To identify supply and demand effects, we analyze two types of events—two rapid price increases since late 2017 and the introduction of a new feature called Segwit.
Continue Reading
https://www.bankofcanada.ca
Join the Discussion