What drives Bitcoin fees? Using SegWit to assess Bitcoin’s long-run sustainability

نویسندگان

چکیده

Can Bitcoin remain tamper-proof in the long run? We use block-level data from blockchain to estimate impact of congestion and US dollar price on fee rates. The introduction adoption segregated witness (SegWit) protocol allows us identify an aggregate demand curve for transactions. find that SegWit has reduced revenue by about 70%. Fee could be maximized at a block size 0.6 megabytes when remains current levels. At this size, maximum would equivalent one-eighth average reward. Hence, large sustained increases are required keep mining rewards constant run.

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ژورنال

عنوان ژورنال: The journal of financial market infrastructures

سال: 2022

ISSN: ['2049-5404', '2049-5412']

DOI: https://doi.org/10.21314/jfmi.2021.014