Bitmex, the big cryptocurrency exchange that focusses mostly on bitcoin, published an excellent PDF file summarizing the economics of Bitcoin:
This report is a three part piece on Bitcoin economics. In the first piece, published in
October 2017, we look at common misconceptions with respect to how banks make
loans and the implications this has on the ability of banks to expand the level of credit
in the economy. We analyse the inherent properties of money which ensure that this
is the case and evaluate the impact this could have on the business cycle. In part two,
also published in October 2017, we look at why Bitcoin might have some unique
combinations of characteristics, compared to traditional forms of money. We explain
the implications this could have on the ability of banks to engage in credit expansion.
In part three, published in May 2018, we look at the deflationary nature of Bitcoin and
consider why this deflation may be necessary due to some of Bitcoin’s weaknesses.
We also look at how Bitcoin could be more resilient to some of the traditional
economic disadvantages of deflation than some of Bitcoin’s critics may think.
You can download it here: