| Abstract |
Hinzen, John, and Salah (2022) argue that the design of the Bitcoin protocol results in a negative network effect. In their view, additional users create network congestion and settlement delays that discourage adoption. This is an interesting theoretical result, but rests on faulty assumptions about how bitcoin actually works. In particular, the authors fundamentally misunderstand how Bitcoin achieves consensus and how the entry and exit of miners affects the timing of new transaction blocks. The authors also ignore existing, widely-implemented scaling solutions. |
| Authors |
Andrew M. Bailey  , Troy Cross , Joshua R. Hendrickson , William J. Luther , Bradley Rettler  , Craig Warmke
|
| Journal Info |
RELX Group (Netherlands) | American Institute for Economic Research Working Paper Series
|
| Publication Date |
5/21/2023 |
| ISSN |
1556-5068 |
Type |
article |
| Open Access |
closed
|
| DOI |
https://doi.org/10.2139/ssrn.4486727 |
| Keywords |
Blockchain (Score: 0.488352)
|
