When Cryptomining Comes to Town: High Electricity-Use Spillovers to the Local Economy

Empowering Metaverse Through Machine Learning and Blockchain Technology: A Study on Machine Learning, Blockchain, and Their Combination to Enhance Metaverse

“…Crypto mining is a task involving users decoding a set of complicated mathematical problems to gain transactions of money added into user accounts in the digital market of cryptocurrencies [2]. Crypto mining requires heavy computational computer hardware to complete the recording of transactions in blockchain cryptocurrencies.…”

“…Crypto mining requires heavy computational computer hardware to complete the recording of transactions in blockchain cryptocurrencies. Crypto mining is costly since it requires expensive computer hardware for processing blockchain transactions and increases the cost of electricity usage bills for the consumer [2]. Keep in mind that a process like crypto mining would result in a high benefit of passive income for the consumer if used in a controlled environment in a first-world country like the US.…”

“…Although crypto mining is an intriguing procedure for boosting the passive income of a miner, the local business sector will deteriorate over time due to Crypto mining. Researchers in a published study concluded that when introducing crypto mining in first-world countries like USA or China, local fixed asset investments decrease yearly by 0.36%, negatively affecting the local business sector [2]. Keep in mind that if firms and consumers provide more support for crypto mining, the demand for crypto mining increases and possibly enhances local business sectors in first-world countries.…”

Proof-Of-Work Consensus under Exogenous Distress: Evidence from Mining Shocks in the Bitcoin Ecosystem

“…Prat and Walter (2021) provide a structural model of miners' entry and exit decision based on variation in the Bitcoin price. Benetton et al (2021) point to negative externalities of organized mining activities. Garratt and van Oordt (2020) highlight the relevance of fixed costs associated with the operation of mining equipment for the robustness of the consensus protocol.…”

Money Creation in Decentralized Finance: A Dynamic Model of Stablecoin and Crypto Shadow Banking

“…Law of one price can fail in segmented markets (Makarov and Schoar, 2020). Proof-of-work protocol has innate limits on adoption Hinzen, John, and Saleh (2019), system security risks (Budish, 2018;Pagnotta, 2021), and requires wasteful energy consumption that crowds out other users (Benetton, Compiani, and Morse, 2021). Researchers are active in studying alternative protocols, such as proof-of-stake (e.g., Saleh, 2020;Fanti, Kogan, and Viswanath, 2019).…”