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The game theory of Bitcoin and cryptocurrencies



 

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The unique characteristics of cryptocurrencies make them an interesting subject for game theory analysis, as they can help explain the incentives and behaviors involved in trading and investing. This article discusses the concept of the prisoner’s dilemma, mining cryptocurrencies and blockchain forks that are relevant to the game theory of Bitcoin and cryptocurrencies.

Game theory is a mathematical framework that helps explain decision-making in strategic situations. Cryptocurrencies, like Bitcoin (BTC), have become a popular subject for game theorists due to their decentralized nature and potential to disrupt traditional financial systems.

The prisoner’s dilemma and cryptocurrency mining

The game theory of blockchain forks

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