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A model of the optimal selection of crypto assets

Accepted version
Peer-reviewed

Type

Article

Change log

Authors

Bartolucci, S 
Kirilenko, A 

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).

Description

Keywords

adoption, crypto assets, cryptocurrencies

Journal Title

Royal Society Open Science

Conference Name

Journal ISSN

2054-5703
2054-5703

Volume Title

7

Publisher

The Royal Society

Rights

All rights reserved