diff --git a/Bitcoin/Bitcoin_and_Oil.tex b/Bitcoin/Bitcoin_and_Oil.tex index e7d62d4..1a4f6a3 100644 --- a/Bitcoin/Bitcoin_and_Oil.tex +++ b/Bitcoin/Bitcoin_and_Oil.tex @@ -3,6 +3,8 @@ %---------------------------------------------------------------------------------------- \documentclass[aspectratio=169,xcolor=dvipsnames]{beamer} \usetheme{SimpleDarkBlue} \usepackage{hyperref} \usepackage{graphicx} % Allows including images +\usepackage{framed} +\usepackage{amssymb} \usepackage{booktabs} % Allows the use of \toprule, \midrule and \bottomrule in tables \usepackage{textpos} %{\includegraphics[width=\paperwidth,height=\paperheight,keepaspectratio]{./img/Mines_background1.pdf}} @@ -32,7 +34,12 @@ \begin{document} %------------------------------------------------ \section{Introduction \& Overview} +\input{./Sections/Intro.tex} \input{./Sections/Key_Questions.tex} +\input{./Sections/Bitcoin_Incentives.tex} +\input{./Sections/Mining_Structure.tex} +\input{./Sections/Mining_Model.tex} +\input{./Sections/Mining_elast.tex} \section{Theory} \section{History} %\subsection{Key Events} diff --git a/Bitcoin/Sections/Bitcoin_Incentives.tex b/Bitcoin/Sections/Bitcoin_Incentives.tex new file mode 100644 index 0000000..1fa6488 --- /dev/null +++ b/Bitcoin/Sections/Bitcoin_Incentives.tex @@ -0,0 +1,29 @@ +%------------------------------------------------ +\begin{frame}{Bitcoin Mining Rewards} + Two sources of income for Bitcoin Miners, a Block Reward and a User fee + \newline + \begin{center} + Constant Miner Reward + \begin{formal} + ``The steady addition of a constant amount of new coins is analogous to gold miners expending resources to add gold to circulation. In our case, it is CPU time and electricity that is expended.'' + \begin{list}{$-$} + \item{Satoshi Nakomoto} + \end{list} + + \end{formal} + \end{center} + %Current reward is 6.5 Bitcoin + \begin{center} + Variable User Fees + \begin{formal} + %The incentive can also be funded with transaction fees. If the output value of a transaction is less than its input value, the difference is a transaction fee that is added to the incentive value of the block containing the transaction. Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees and be completely inflation free. + ``The incentive can also be funded with transaction fees\ldots Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees'' + \begin{list}{$-$} + \item{Satoshi Nakomoto} + \end{list} + \end{formal} + \end{center} + %Currently ranges from 1\% to 2\% of reward, but has spiked to 25\% + +\end{frame} + diff --git a/Bitcoin/Sections/Key_Questions.tex b/Bitcoin/Sections/Key_Questions.tex index 2247909..b7952e7 100644 --- a/Bitcoin/Sections/Key_Questions.tex +++ b/Bitcoin/Sections/Key_Questions.tex @@ -1,12 +1,31 @@ %------------------------------------------------ -\begin{frame}{Questions} +\begin{frame}{Key Questions} \textbf{What are the long run regional welfare changes that can be expected as Bitcoin mining becomes a co-product of oil?} +\pause \begin{itemize} \item What type of incentives are created? - \subitem{test} + \begin{itemize} + \item{Micro model of Bitcoin mining \& oil production choices} + \end{itemize} + \pause \item What is the regional distribution of these incentives? + \begin{itemize} + \item{Collection of well attribute data} + \end{itemize} + \pause \item How might producers respond in each region? + \begin{itemize} + \item{Econometric estimates state-basin level elasticty of supply} + \end{itemize} + \pause \item How will consumer and producer welfare change? - \end{itemize} + \begin{itemize} + \item{Model revenue changes} + \item{Engineering based pollution estimates} + \item{Local externality counterfactual} + \end{itemize} +\end{itemize} +\pause +\textbf{Results in counterfactual oil production by geologic basin and state, in key metrics.} \end{frame} diff --git a/Bitcoin/Sections/Mining_Model.tex b/Bitcoin/Sections/Mining_Model.tex new file mode 100644 index 0000000..59c59bf --- /dev/null +++ b/Bitcoin/Sections/Mining_Model.tex @@ -0,0 +1,5 @@ +\begin{frame}{Bitcoin Mining Market Structure} +\begin{center} + \includegraphics[width=\textwidth,height=0.8\textheight,keepaspectratio]{./img/SDMining.png} +\end{center} +\end{frame} diff --git a/Bitcoin/Sections/Mining_Structure.tex b/Bitcoin/Sections/Mining_Structure.tex new file mode 100644 index 0000000..4ceb5bf --- /dev/null +++ b/Bitcoin/Sections/Mining_Structure.tex @@ -0,0 +1,34 @@ +%------------------------------------------------ +\begin{frame}{Bitcoin Mining} + \begin{columns}[t] % The "c" option specifies centered vertical alignment while the "t" option is used for top vertical alignment + \column{.45\textwidth} % Left column and width + \textbf{Rewards and Fees} + \begin{enumerate} + \item{Awarded by ``lottery''} + \item{Lottery completes \(\approx \) every 10 minutes} + \item{Risk pools smooth returns} + \end{enumerate} + + \column{.5\textwidth} % Right column and width + \textbf{Costs} + \begin{enumerate} + \item{Fixed cost: Specialized computers } + \item{Marginal cost: Electricity} + \end{enumerate} + \end{columns} + \mbox{} + \newline + \newline + \textbf{Model of single period returns} + \newline + \(Revenue=\text{Total Reward}\cdot \frac{\text{Tickets Owned}}{\text{All Tickets}}\) + \newline + \(Costs=\text{Electricty used}\cdot\text{Price of Elctricty}\) + \newline + \(\text{Tickets Owned}=f(\text{Computer Output},\text{Electricty Used})\) + \newline + \(\text{Total Reward}=\text{Mining Reward} + \text{User Fees}\) + + +\end{frame} + diff --git a/Bitcoin/Sections/Mining_elast.tex b/Bitcoin/Sections/Mining_elast.tex new file mode 100644 index 0000000..506532c --- /dev/null +++ b/Bitcoin/Sections/Mining_elast.tex @@ -0,0 +1,17 @@ +\begin{frame}{Bitcoin Mining Market Structure} + \begin{block}{Revenue} + \begin{equation} + R_{i,t}=\eta_{t}\cdot\frac{q_{i}}{Q^{-i}_{t}} + \end{equation} +\end{block} +Where \(R_{i,t}\) is the revenue of miner \(i\in I\), at time t. \(q_{i}\) is the hash power of a miner i, and \(Q^{-i}_{t}\) is the hash of all other miners. The miner reward is \(\eta\) + + \begin{block}{Revenue change from t to t+1} + \begin{align*} +% R_{i,t+1}-R_{i,t}=\eta \cdot\frac{q_{i}}{Q^{-i}_{t+1}-Q^{-i}_{t}} +% \\ + \%\Delta R=\%\Delta P_{btc}(1-\epsilon) + \end{align*} +\end{block} +If the bitcoin price elasticity of hash \(\epsilon\) is elastic, than a decrease in price will \textbf{\emph{increase}} revenue, for low marginal cost producers. +\end{frame} diff --git a/Bitcoin/beamercolorthemeSimpleDarkBlue.sty b/Bitcoin/beamercolorthemeSimpleDarkBlue.sty new file mode 100644 index 0000000..90d7247 --- /dev/null +++ b/Bitcoin/beamercolorthemeSimpleDarkBlue.sty @@ -0,0 +1,49 @@ +\definecolor{InvisibleRed}{rgb}{0.92, 0.9, 0.9} +\definecolor{InvisibleGreen}{rgb}{0.9, 0.92, 0.9} +\definecolor{InvisibleBlue}{rgb}{0.9, 0.9, 0.92} + +\definecolor{LightBlue}{rgb}{0.4, 0.55, 0.65} + +\definecolor{MediumRed}{rgb}{0.92549, 0.34509, 0.34509} +\definecolor{MediumGreen}{rgb}{0.36862, 0.66666, 0.65882} +\definecolor{MediumBlue}{rgb}{0.01176, 0.31372, 0.43529} + +\definecolor{DarkBlue}{rgb}{0.05, 0.15, 0.3} + +\usecolortheme[named=DarkBlue]{structure} + +\setbeamercolor{palette primary}{bg=DarkBlue,fg=white} +\setbeamercolor{palette secondary}{bg=MediumBlue,fg=white} +\setbeamercolor{palette tertiary}{bg=LightBlue,fg=white} +\setbeamercolor{block title}{bg=MediumBlue} +\setbeamercolor{block body}{bg=InvisibleBlue} +\setbeamercolor{block title example}{bg=MediumGreen} +\setbeamercolor{block body example}{bg=InvisibleGreen} +\setbeamercolor{block title alerted}{bg=MediumRed} +\setbeamercolor{block body alerted}{bg=InvisibleRed} +%%ACG ADDED +%Created for making quotes look nice +%https://jevon.org/wiki/Fancy_Quotation_Boxes_in_Latex + % for adjustwidth environment + \usepackage[strict]{changepage} + + % for formal definitions + \usepackage{framed} + \definecolor{formalshade}{rgb}{0.95,0.95,1} + + \newenvironment{formal}{% + \def\FrameCommand{% + \hspace{1pt}% + {\color{DarkBlue}\vrule width 2pt}% + {\color{formalshade}\vrule width 4pt}% + \colorbox{formalshade}% + }% + \MakeFramed{\advance\hsize-\width\FrameRestore}% + \noindent\hspace{-4.55pt}% disable indenting first paragraph + \begin{adjustwidth}{}{7pt}% + \vspace{2pt}\vspace{2pt}% + } + {% + \vspace{2pt}\end{adjustwidth}\endMakeFramed% + } + diff --git a/Bitcoin/beamerfontthemeSimpleDarkBlue.sty b/Bitcoin/beamerfontthemeSimpleDarkBlue.sty new file mode 100644 index 0000000..8fb6e1a --- /dev/null +++ b/Bitcoin/beamerfontthemeSimpleDarkBlue.sty @@ -0,0 +1,26 @@ +\mode + +%%%%%%%%%%%% fonts + +\setbeamerfont{structure}{family=\sffamily,series=\mdseries} + +\setbeamerfont{title}{size=\LARGE,parent=structure} +\setbeamerfont{subtitle}{size=\normalsize,parent=title} + +\setbeamerfont{date}{size=\scriptsize,series=\mdseries,parent=structure} +\setbeamerfont{author}{size=\Large,series=\mdseries,parent=structure} +\setbeamerfont{institute}{size=\scriptsize,series=\mdseries,parent=structure} + +\setbeamerfont{section in toc}{size=\Large,parent=structure} +\setbeamerfont{section in head/foot}{size=\tiny,parent=structure} +\setbeamerfont{subsection in toc}{size=\large,parent={section in toc}} + +\setbeamerfont{frametitle}{parent=structure,size=\LARGE} +\setbeamerfont{framesubtitle}{parent=frametitle,size=\Large} + +\setbeamerfont{caption}{size=\footnotesize} +\setbeamerfont{item}{parent=structure,series=\mdseries} +\setbeamerfont{block title}{size=\large,series=\mdseries,parent={structure,block body}} + +\mode + diff --git a/Bitcoin/beamerthemeSimpleDarkBlue.sty b/Bitcoin/beamerthemeSimpleDarkBlue.sty new file mode 100644 index 0000000..cc170f7 --- /dev/null +++ b/Bitcoin/beamerthemeSimpleDarkBlue.sty @@ -0,0 +1,23 @@ +\mode + +% Settings +\usetheme{Madrid} +\useinnertheme{circles} +% \useoutertheme{simpleinfo} +% \useoutertheme{miniframes} % Alternatively: miniframes, infolines, split +\usefonttheme{SimpleDarkBlue} +\usecolortheme{SimpleDarkBlue} + +% \setbeamertemplate{footline} % To remove the footer line in all slides uncomment this line +\setbeamertemplate{footline}[frame number] % To replace the footer line in all slides with a simple slide count uncomment this line +\setbeamertemplate{navigation symbols}{} % To remove the navigation symbols from the bottom of all slides uncomment this line +\setbeamertemplate{blocks}[rounded][shadow=true] +\setbeamertemplate{enumerate items}[default] +% table of contents (overview) +\setbeamertemplate{section in toc}[sections numbered] +\setbeamertemplate{subsection in toc}[default] +%%ACG +\setbeamertemplate{itemize item}[square] +\setbeamertemplate{itemize subitem}[triangle] + +\mode diff --git a/Bitcoin/img/SDMining.png b/Bitcoin/img/SDMining.png new file mode 100644 index 0000000..0bcefd3 Binary files /dev/null and b/Bitcoin/img/SDMining.png differ