The Finance Brown Bag Seminar is held by the Institute for Finance, Banking and Insurance (WU Vienna) and the Vienna Graduate School of Finance (VGSF). It serves as a presentation platform for PhD students, faculty members, and visitors. An overview of BBS on the website of the Institute for Finance, Banking and Insurance.
June 30th, 2020, 6:00 - 7:00 pm
You can participate in the seminar online via Microsoft Teams
The meeting will open at 5:45 pm for you to dial in. To join the stream please follow this link.
In case of technical problems please contact: email@example.com
Alfred Lehar, University of Calgary
Title: "Miner Collusion and the BitCoin Protocol"
Bitcoin users can offer fees to miners who record their transactions in the Blockchain. We document high variation of bitcoin fees, not only over time, but also within blocks. Further, the blockchain rarely runs at capacity, even though fees tend to be higher when blocks are fuller, so miners appear to be leaving “money on the table”. We present a simple model of price discrimination to explain our results. We note that mining pools facilitate collusive equilibria, and estimate that they have extracted least 200 million USD a year in excess fees by making processing capacity scarce.