Dealing with hackers in a bitcoin trading model
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2018-07-12
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en
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This thesis uses the model in Hendrickson, Hogan, and Luther (2016) as a basis for an extended trading model that includes hackers. In addition, it shows how two measures - a government tax and private security - can help private agents to deal with the negative effects of hacking. This thesis shows how these measures deal with hacking and under what conditions the measures are effective. It shows that a tax is only effective if it bans hackers while agents are still willing to use bitcoin. Futher, it shows that private security works only if the utility from using bitcoin is high and the cost of the security is sufficiently low.
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Faculteit der Managementwetenschappen