Bitcoin Will Still Bite the Dust

More from: | Coindesk |
0

Kevin Dowd is a Professor of Finance and Economics in the Business School at Durham University, and the co-author of the 2015 paper “Bitcoin Will Bite the Dust.” 

For more on bitcoin’s 10th anniversary, check out our new interactive feature Bitcoin At 10

—————————————————————

Back in August 2014, I discovered that the bitcoin mining industry had the industrial structure of a natural monopoly. A natural monopoly is a market in which production is most efficient with a single producer.

This discovery came as a shock, but the implication was clear: Bitcoin could not survive in the long run. As a check, I field tested my reasoning on various people who are economically literate. None disagreed.

When I first arrived at that

(...)

Read full article » https://www.coindesk.com/bitcoin-will-still-bite-the-dust


About | Coindesk |

CoinDesk is the leading digital media, events and information services company for the crypto asset and blockchain technology community. Its mandate is to inform, educate and connect the global community as the authoritative daily news provider dedicated to chronicling the space.

»Twitter: @coindesk »Facebook: @coindesk