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Inicio  /  Future Internet  /  Vol: 11 Par: 1 (2019)  /  Artículo
ARTÍCULO
TITULO

An Agent Based Model to Analyze the Bitcoin Mining Activity and a Comparison with the Gold Mining Industry

Luisanna Cocco    
Roberto Tonelli and Michele Marchesi    

Resumen

In this paper, we present an analysis of the mining process of two popular assets, Bitcoin and gold. The analysis highlights that Bitcoin, more specifically its underlying technology, is a ?safe haven? that allows facing the modern environmental challenges better than gold. Our analysis emphasizes that crypto-currencies systems have a social and economic impact much smaller than that of the traditional financial systems. We present an analysis of the several stages needed to produce an ounce of gold and an artificial agent-based market model simulating the Bitcoin mining process and allowing the quantification of Bitcoin mining costs. In this market model, miners validate the Bitcoin transactions using the proof of work as the consensus mechanism, get a reward in Bitcoins, sell a fraction of them to cover their expenses, and stay competitive in the market by buying and divesting hardware units and adjusting their expenses by turning off/on their machines according to the signals provided by a technical analysis indicator, the so-called relative strength index.

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