Wilko Bolt


On the Value of Virtual Currencies

Staff Working Paper 2016-42 Wilko Bolt, Maarten van Oordt
This paper develops an economic framework to analyze the exchange rate of virtual currency. Three components are important: first, the current use of virtual currency to make payments; second, the decision of forward-looking investors to buy virtual currency (thereby effectively regulating its supply); and third, the elements that jointly drive future consumer adoption and merchant acceptance of virtual currency.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Asset Pricing, Digital Currencies, Exchange rates JEL Code(s): E, E4, E42, E5, E51, F, F3, F31, G, G1

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