  We study to what extent the Bitcoin blockchain security permanently depends
on the underlying distribution of cryptocurrency market outcomes. We use daily
blockchain and Bitcoin data for 2014-2019 and employ the ARDL approach. We test
three equilibrium hypotheses: (i) sensitivity of the Bitcoin blockchain to
mining reward; (ii) security outcomes of the Bitcoin blockchain and the
proof-of-work cost; and (iii) the speed of adjustment of the Bitcoin blockchain
security to deviations from the equilibrium path. Our results suggest that the
Bitcoin price and mining rewards are intrinsically linked to Bitcoin security
outcomes. The Bitcoin blockchain security's dependency on mining costs is
geographically differenced - it is more significant for the global mining
leader China than for other world regions. After input or output price shocks,
the Bitcoin blockchain security reverts to its equilibrium security level.
