Implementation of real options with learning process on Bitcoin mining project

Abstract

This paper develop an approach to evaluate Bitcoin Mining Project using Real Option Method. In evaluating a project not yet being run, there is opportunity made available to the manager of company to expand or abandon the project if some particular conditions would occur in the time period being projected. The methods are based on Binomial Tree with varying time of Learning Option. Having evaluated the project for five years, it concludes that the project with Real Option methods can increase the value of the project.