A model of the optimal selection of crypto assets
File(s)rsos.191863.pdf (950.72 KB)
Published version
Author(s)
Bartolucci, Silvia
Kirilenko, Andrei
Type
Journal Article
Abstract
We propose a modelling framework for the optimal selection of crypto assets. We assume that crypto assets can be described according to two features: security (technological) and stability (governance). We simulate optimal selection decisions of investors, being driven by (i) their attitudes towards assets’ features, (ii) information about the adoption trends, and (iii) expected future economic benefits of adoption. Under a variety of modelling scenarios—e.g. in terms of composition of the crypto assets landscape and investors’ preferences—we are able to predict the features of the assets that will be most likely adopted, which can be mapped to macro-classes of existing crypto assets (stablecoins, crypto tokens, central bank digital currencies and cryptocurrencies).
Date Issued
2020-08
Date Acceptance
2020-07-13
Citation
Royal Society Open Science, 2020, 7 (8), pp.1-18
ISSN
2054-5703
Publisher
The Royal Society
Start Page
1
End Page
18
Journal / Book Title
Royal Society Open Science
Volume
7
Issue
8
Copyright Statement
© 2020 The Authors.
Published by the Royal Society under the terms of the Creative Commons Attribution License http://creativecommons.org/licenses/by/4.0/, which permits unrestricted use, provided the original author and source are credited.
Published by the Royal Society under the terms of the Creative Commons Attribution License http://creativecommons.org/licenses/by/4.0/, which permits unrestricted use, provided the original author and source are credited.
License URL
Identifier
https://royalsocietypublishing.org/doi/10.1098/rsos.191863
Publication Status
Published
Date Publish Online
2020-08-12