Santiago Velez ☀️ 💧🏴‍☠️🪝 Profile picture
Co-Founder & R&D Division Lead - Block Digital, Co-Founder & VP of R&D at Sindric Solutions, LLC Former Nuclear Engineer and VP of UWUA L590 Engineers Union

Jun 3, 2021, 5 tweets

Excellent paper by Giovanni Compiani & Matteo Benetoon of UC Berkley on the role of belief in the price action of digital assets over demographics (early vs. late buyers & age).
cowles.yale.edu/3a/bcwp-invest…

Creating the model and sorting out some relative effects on a the data set.

The model:

Late buyers command a "belief" premium that prices will continue to rise and double down.

Narrative on the environmental impacts of PoW on prices leads to a perceived winner (reallocation) to non-PoW digital assets. This is expected.

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