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Home Ā» News Articles Ā» 3 Reasons Cryptocurrency May Raise Antitrust Issues by Sr. Economist- Marc Martos-Vila.

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Senior Economist
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Ph.D. in Economics, Princeton University, Princeton, NJ (USA)

Econ One Research, Principal/Senior Economist, 2015 ā€“ Present

London Business School, Visiting Professor of Finance, 2012ā€“2015

UCLA Anderson School of Management, Professor of Finance, 2006ā€“2012

Claremont McKenna College, Robert Day School of Economics and Finance, Visiting Professor of Finance, 2011ā€“2012

ESADE Business School, Visiting Professor of Finance, 2013ā€“2014

Princeton University, Teaching and Research Assistant, 2003ā€“2006

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law360 article Marc Martos-Vila
January 30, 2019

3 Reasons Cryptocurrency May Raise Antitrust Issues by Sr. Economist- Marc Martos-Vila.

Read Econ One’s expert Marc Martos-Vila’s new Law360 article about bitcoin-related markets potentially being the subject of antitrust concerns.

Bitcoin and other cryptocurrencies have garnered significant attention and investment, with Bitcoin’s market capitalization skyrocketing from $11 billion to $111 billion in just two years. This rapid growth has raised concerns about potential antitrust issues, despite the decentralized nature of blockchain technology that underpins cryptocurrencies. Econ One Expert Marc Martos-Vila identifies three key areas where antitrust concerns may arise: concentration in exchange services, mining pool dominance, and the impact of increased transparency on market competition.

Firstly, while there are over 200 cryptocurrency exchanges, trading is concentrated among a few, raising concerns about market power and potential price manipulation. Secondly, mining pools, essential for verifying transactions, have seen a rise in concentration, with the top five pools now controlling 71% of mining power. This concentration poses risks of blockchain manipulation. Lastly, blockchain’s transparency, while beneficial for reducing information asymmetries, can facilitate collusion by making it easier for competitors to monitor and enforce price-fixing agreements. These factors suggest that despite its decentralized promise, the cryptocurrency market is not immune to antitrust issues, necessitating careful analysis by economic experts.

Services: Antitrust

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