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Economic simulation of cryptocurrencies

Mainelli, Michael R.; Leitch, Matthew; Demetis, Dionysios

Authors

Michael R. Mainelli

Matthew Leitch

Abstract

Cryptocurrencies have the potential to become effective currencies that give a higher level of macroeconomic control, thanks to the information that is available about holdings and transactions, and the potential for automated control mechanisms. However, these cryptocurrencies need to be designed properly and tested before launch. This paper reports the early results of an economic model that simulates a variety of behaviors by economic agents and some simple control mechanisms. An economic simulation model is likely to be a valuable tool in developing effective cryptocurrency systems and interacting with regulators.

Journal Article Type Article
Publication Date Apr 30, 2018
Peer Reviewed Not Peer Reviewed
Volume 47
Pages 89-101
Keywords cryptocurrencies, simulation, DasCoin
Publisher URL http://capco.com/Insights/Capco-Institute/Journal-47-Digitization/Economic-simulation-of-cryptocurrencies

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