Keywords
cryptocurrency, Bitcoin, Ethereum, consumption, transaction data, household balance sheet, real estate
Abstract
This paper uses transaction-level bank and credit card data to identify cryptocurrency investors and assess the impact of crypto wealth fuctuations on household consumption, as well as on investments in other assets. We fnd an $0.09 MPC from crypto gains, exceeding most previous estimates from unrealized equity gains. However, crypto investors are mostly also active equity investors, with many similar consumption patterns across gains from both asset classes. Households sell cryptocurrencies to increase discretionary and housing expenditures, with the latter causing local house price appreciation.
Original Publication Citation
The Effects of Cryptocurrency Wealth on Household Consumption and Investment (2024) with Scott Baker, Tetyana Balyuk, Marco Di Maggio, Mark Johnson, and Jason Kotter Revise and Resubmit, Journal of Finance
BYU ScholarsArchive Citation
Aiello, Darren; Baker, Scott R.; Balyuk, Tetyana; Maggio, Marco Di; Johnson, Mark J.; and Kotter, Jason, "The Efects of Cryptocurrency Wealth on Household Consumption and Investment" (2014). Faculty Publications. 9132.
https://scholarsarchive.byu.edu/facpub/9132
Document Type
Working Paper
Publication Date
2014
Publisher
Journal of Finance
Language
English
College
Marriott School of Business
Department
Finance
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