Bitcoin Mining and Electricity Consumption
We develop a dynamic equilibrium model for Bitcoin mining to characterize miners’ optimal entry and exit strategy with technology innovation. The model can jointly calibrate to the co-movements of computing power, electricity consumption of Bitcoin network, and mining revenue. Our model reveals how miners’ electricity consumption is endogenously affected by the Bitcoin price.
Steven Kou is a Questrom Professor in Management and Professor of Finance at Boston University. He teaches courses on FinTech and quantitative finance. Currently he is a co-area-editor for Operations Research and a co-editor for Digital Finance, and has served on editorial boards of many journals, such as Management Science, Mathematics of Operations Research, and Mathematical Finance. He is a fellow of the Institute of Mathematical Statistics and won the Erlang Prize from INFORMS in 2002. Some of his research results have been incorporated into standard MBA textbooks.
Zoom Meeting Details
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- Meeting ID: 984 1998 1666
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