After thinking about Bitcoin for a while, I decided to dive deeper. I’ve just added a new paper to the Research section, titled “The predictable cost of Bitcoin”. It provides a good technical intro to Bitcoin, and defines the partial equilibrium in the Bitcoin miners’ market. This allows me to compute pretty much everything about Bitcoin (e.g.,¬†number of outstanding Bitcoins, Bitcoin market cap, inflation rate, aggregate miner revenue, aggregate spending on computing chips and electricity, and aggregate computing power dedicated to mining Bitcoins), given a date and the price of Bitcoin (say, in terms of US dollars).