Hoernig, SteffenLentge, Katharina Louisa2023-08-022023-08-022023-01-132022-12-16http://hdl.handle.net/10362/156168This paper reviews the existing economic theory on Bitcoin (BTC) production, analyzes the Bitcoin production market – as well as the associated externalities of the Bitcoin production process. It discusses how the underlying incentive mechanism further a competitive arms race that not only contradicts the philosophy of the underlying consensus scheme but results in an artificially high level of production demand that imposes significant damages onto society.engBitcoinBlockchainProduction externalitiesCryptocurrency miningmaster thesis203312066