00000nam 2200000zi 4500 9.942578 CaOODSP 20240904123619 m o d f cr mn||||||||| 240829t20242024onca ob f000 0 eng d CaOODSP eng rda CaOODSP eng eng fre n-cn--- FB3-5/2024-22E-PDF Balutel, Daniela, author. The role of beliefs in entering and exiting the Bitcoin market / by Daniela Balutel, Christopher Henry, Jorge Vásquez and Marcel Voia. [Ottawa] : Bank of Canada = Banque du Canada, 2024. ©2024 1 online resource (ii, 59 pages) : colour illustrations. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2024-22 ISSN assigned to different series. "Last updated: June 14, 2024." Includes bibliographical references (pages 26-31). "Cryptoassets, such as Bitcoin, represent a new type of financial technology that has grown substantially in recent years in terms of market size. Previous research has documented the characteristics and motivations of early Bitcoin adopters, but less work has been done studying those who choose to exit the Bitcoin market. We develop a theoretical model of both entry and exit to the Bitcoin market, the dynamics of which are driven by agents' beliefs about Bitcoin's survival. We connect the model to micro-level data from Canada, allowing us to empirically test the role of beliefs in transitioning to past ownership. Using a control function approach with appropriate exclusion restrictions, we estimate the effects of beliefs while controlling both for selection into or out of Bitcoin ownership and for possible simultaneity. We find evidence that beliefs are significant predictors of exit, while the size and direction of these effects differ across time and ownership status"--Abstract, page ii. Includes abstracts in English and French. Bitcoin Canada Econometric models. Bitcoin Canada Modèles économétriques. Crises financières Modèles économétriques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2024-22. (CaOODSP)9.806221 PDF 1.27 MB https://publications.gc.ca/collections/collection_2024/banque-bank-canada/FB3-5-2024-22-eng.pdf