Paper Info
Title
An Agent Based Model to Analyze the Bitcoin Mining Activity and a Comparison with the Gold Mining Industry.
Abstract
In this paper, we present an analysis of the mining process of two popular assets, Bitcoin and gold. The analysis highlights that Bitcoin, more specifically its underlying technology, is a safe haven that allows facing the modern environmental challenges better than gold. Our analysis emphasizes that crypto-currencies systems have a social and economic impact much smaller than that of the traditional financial systems. We present an analysis of the several stages needed to produce an ounce of gold and an artificial agent-based market model simulating the Bitcoin mining process and allowing the quantification of Bitcoin mining costs. In this market model, miners validate the Bitcoin transactions using the proof of work as the consensus mechanism, get a reward in Bitcoins, sell a fraction of them to cover their expenses, and stay competitive in the market by buying and divesting hardware units and adjusting their expenses by turning off/on their machines according to the signals provided by a technical analysis indicator, the so-called relative strength index.
Year
DOI
Venue
2019
10.3390/fi11010008
FUTURE INTERNET
Keywords
Field
DocType
cryptocurrencies systems,Bitcoin,gold,sustainable development,blockchain technology,agent-based modeling
Proof-of-work system,Agent-based model,Economic impact analysis,Computer science,Relative strength index,Knowledge management,Gold mining,Risk analysis (engineering),Fluid ounce (US),Sustainable development,Technical analysis
Journal
Volume
Issue
ISSN
11
1
1999-5903
Citations 
PageRank 
References 
0
0.34
2
Authors
3
Name
Order
Citations
PageRank
Luisanna Cocco1274.76
Roberto Tonelli214519.35
Michele Marchesi3807120.28