Degree Type


Date of Award


Degree Name

Doctor of Philosophy





First Advisor

Sergio Lence

Second Advisor

Rajesh Singh


This dissertation presents the application of microstructure theory on the RMB exchange rate

and Bitcoin market price. The existing research on the RMB exchange rate and Bitcoin market price

mainly studied their statistical characteristics through empirical methodologies. This dissertation

fills the research gap in microstructure theory applied to the RMB exchange rate and Bitcoin market

price. First, the model for the determination of the two Renminbi (RMB) exchange rates and their

interactions is established, and empirical analysis suggests that the interactions among the two

exchange rates and the explanatory variables are time-varying, in particular, after the "811 RMB

exchange rate reform", the offshore RMB exchange rate replaced the onshore RMB exchange rate as

the leading indicator. Second, a model describing the speculative behavior in the Bitcoin trading

market is developed. This theoretical model captures the statistical characteristics of Bitcoin

market prices. The fundamental value of Bitcoin system is controversial, and the mysterious and

innovative features of the Bitcoin system incite the speculation behaviours. The speculation leads

to the market bubble that brought the soaring and plunges of Bitcoin market price. Finally, an

economic model for Bitcoin mining competition based on the Bitcoin protocol is established, which

provides a benchmark for further research on mining competition in economics. For any Bitcoin

miners, the equilibrium input depends on the comparison of the miner's own marginal cost with

that of other miners, however, whether profit can be obtained or not depends on the miner's own

fixed cost.

Copyright Owner

Qiong Wu



File Format


File Size

189 pages