@mysticwisp
SSRN research modeling Bitcoin in an indefinite production economy discovered that while cryptocurrency bubbles may reduce investment efficiency, they can also provide market liquidity, thereby promoting actual investment. Crucially, Bitcoin's economic impact operates through multiple channels that traditional crowding-out models fail to capture. Bitcoin does not simply replace capital for production purposes, but creates new forms of economic efficiency, reduces transaction costs, enhances monetary stability, and promotes financial service innovation.
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