The History of Bitcoin

Since its beginning, bitcoin, a virtual cash, has developed in the two its fame and its use. In spite of this, there still exists a general shortage of financial investigation in the scholarly world about this new monetary wonder. Different themes have been investigated concerning bitcoin, counting its monetary status as a money (Yermack 2013), the impetuses of bitcoin diggers (Kroll et al 2013), the financial aspects of bitcoin trade costs (Ciaian et al 2014), among others. Macroeconomist Paul Krugman said something firmly on the regulating side of the financial banter with his article "Bitcoin is Evil" distributed in late 2013. The object of this paper is to research a yet unexplored subject in bitcoin, buying power equality, and use an alternate way to deal with the subject investigated by Kroll et al, the financial aspects of bitcoin mining. Hence, the structure of the paper will be as per the following. The rest of section one will give a concise history of bitcoin and a clarification of how bitcoin works. Section two, entitled "Buying Power Parity in the Bitcoin Exchange Market" will break down bitcoin from the point of view of buying power equality across three distinctive money trade markets in which bitcoin exchanges. Part three, entitled "An Economic Analysis of Bitcoin Mining," breaks down bitcoin from the viewpoint of the clients that check bitcoin exchanges. 

Section four finishes up. Note that there are discrete reference sections toward the finish of parts two and three. All references are recorded toward the end.