The Intelligent Bitcoin Miner, Part II

By May 26, 2021No Comments

In our last article, we modeled future price trajectory with a Jump-Diffusion process and used a linear function to characterize how global hashpower responds to changes in price. In this article, we characterize miners into several archetypes, each with different profit margins and risk considerations. Under this framework, change in network hashrate is not just a function of change in price, but an aggregation of the collective outputs of all miners with distinct economics and risk profiles.

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