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Demand elasticities of Bitcoin and Ethereum

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  • Jalan, Akanksha
  • Matkovskyy, Roman
  • Urquhart, Andrew

Abstract

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.

Suggested Citation

  • Jalan, Akanksha & Matkovskyy, Roman & Urquhart, Andrew, 2022. "Demand elasticities of Bitcoin and Ethereum," Economics Letters, Elsevier, vol. 220(C).
    • Handle: RePEc:eee:ecolet:v:220:y:2022:i:c:s0165176522003512
    DOI: 10.1016/j.econlet.2022.110877
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