A model of the optimal selection of crypto assets.

Silvia Bartolucci, Andrei Kirilenko
Author Information
  1. Silvia Bartolucci: Department of Finance, Imperial College Business School, London SW7 2AZ, UK. ORCID
  2. Andrei Kirilenko: Department of Finance, Cambridge Judge Business School, Cambridge CB2 1AG, UK.

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: (technological) and (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).

Keywords

Associated Data

Dryad | 10.5061/dryad.qfttdz0cb

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Word Cloud

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