The Economics of Bitcoin
summary
Frames Bitcoin as a two sided platform and builds a queueing game with analytic equilibrium solutions fitted to six years of daily blockchain data, using mempool arrivals, Poisson 10 minute block arrivals, and 1 MB / ~2,000 tx per block as the service batch. Main empirical claim is that transaction fee revenue is negligible until about 70–80% utilization, so fees require congestion and delays; larger infrequent blocks make this worse and the model favors frequent, small blocks for better economic efficiency.
AI-written summary · about
chapters (5)
- 0:00Bitcoin as a payment system
- 12:43Modeling mining and user fees
- 17:38Congestion and security
- 20:44Scalability and conclusions
- 26:13Sharding and future directions
