Atulya Sarin : Bitcoin key players : MarketWatch
Professor of Finance Atulya Sarin published an article in MarketWatch discussing the value drop of bitcoin and how bitcoin mining seeks to recover some of these losses. Bitcoin miners will only be able to recover losses for cost of capital in the long run with the current bitcoin equilibrium price being a little higher than the mining cost.
However, if the price were to drop below mining cost, miners would not receive a compensation for their losses in cost of capital and would find it best not to be involved in the bitcoin blockchain. Regulatory interference and uncertainties about a technology in its infancy are two of the main concerns that Professor Sarin talks about in his article as key players that are affecting bitcoin.
Read the full article here.
Learn more about Professor Atulya Sarin.