Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
We develop a random-matching model to study the price dynamics of divisible monies produced privately through mining. The equilibrium set is composed of a unique equilibrium where the value of money increases until it reaches a steady state and, if money has no intrinsic value, a continuum of perfect-foresight equilibria where the price of money inflates and bursts over time. Early on private money is held for a speculative motive and it acquires a transactional role when money supply becomes sufficiently abundant. We study different mining and matching technologies, fiat and commodity monies, single and competing currencies.