Demand elasticities of Bitcoin and Ethereum

In this paper we analyze dynamic demand elasticity for Bitcoin and Ethereum in terms of price, transaction fees, and energy usage. We find that while both BTC and ETH have significantly positive price elasticities, transaction fee elasticity is negative and positive for BTC and ETH respectively, ind...

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Bibliographic Details
Published in:Economics letters 2022-11, Vol.220, p.110877, Article 110877
Main Authors: Jalan, Akanksha, Matkovskyy, Roman, Urquhart, Andrew
Format: Article
Language:English
Subjects:
Bitcoin
Cryptocurrency
Demand
Elasticity
Ethereum
General Finance
Quantitative Finance
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Summary:In this paper we analyze dynamic demand elasticity for Bitcoin and Ethereum in terms of price, transaction fees, and energy usage. We find that while both BTC and ETH have significantly positive price elasticities, transaction fee elasticity is negative and positive for BTC and ETH respectively, indicating differences in potential uses for these cryptocurrencies. •We analyze the demand elasticity of Bitcoin and Ethereum in terms of price, fees and energy usage.•We find that both have significant positive elasticities on price.•However transaction fee elasticity is negative and positive for Bitcoin and Ethereum.
ISSN:0165-1765
1873-7374
DOI:10.1016/j.econlet.2022.110877