Demand elasticities of Bitcoin and Ethereum

Akanksha Jalan (1) , Roman Matkovskyy (1) , Andrew Urquhart (2)

1 ESC Rennes School of Business
2 Henley Business School [University of Reading]

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.

Domaines: Finance [q-fin.GN]

Akanksha Jalan, Roman Matkovskyy, Andrew Urquhart. Demand elasticities of Bitcoin and Ethereum. Economics Letters, 2022, 220, pp.110877. ⟨10.1016/j.econlet.2022.110877⟩. ⟨hal-03888337⟩