Economic simulation of cryptocurrencies

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

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.

Citation

Mainelli, M. R., Leitch, M., & Demetis, D. (2018). Economic simulation of cryptocurrencies. Capco Journal, 47, 89-101

• Journal Article Type: Article
• Acceptance Date: Apr 30, 2018
• Publication Date: Apr 30, 2018
• Deposit Date: May 4, 2018
• Publicly Available Date: May 31, 2018
• Peer Reviewed: Not Peer Reviewed
• Volume: 47
• Pages: 89-101
• Keywords: cryptocurrencies, simulation, DasCoin
• Public URL: https://hull-repository.worktribe.com/output/815402
• Publisher URL: http://capco.com/Insights/Capco-Institute/Journal-47-Digitization/Economic-simulation-of-cryptocurrencies
• Contract Date: May 4, 2018