Blockchain Papers

Adnan Ali, Suresh Ramakrishnan, Faisal Faisal, Tooba Akram · 6 authors

No abstract is available for this record.

Müge SAĞLAM BEZGİN, Selim GÜNGÖR

In this study, it was aimed to examine that the relationship between Bitcoin price, Bitcoin volume and bitcoin energy consumption, and to research leading indicators of Bitcoin and whether the stock markets of the 5 countries that produce the most Bitcoin act together. In this context, 2011-2022 monthly data of Bitcoin energy, Bitcoin price, Bitcoin volume, USA, China, Kazakhstan, Russia, and Canada indexes was regarded in the study. Diebold and Yilmaz (2012) spillover index and time varying parameter VAR (TVPVAR) methodologies were used in the study. In the result of Diebold and Yilmaz (2012) spillover methodology was observed that the spillover effect of the Bitcoin energy variable on the Bitcoin price is 3.5%. While was observed from leading indicators of Bitcoin to all series examined be spillover, the most spillover was observed that be from Bitcoin price to SP500 index. Net spillover index of Diebold and Yilmaz (2012) was calculated that is 4.54%. In addition to this, in the TVPVAR established model was examined the action and the reaction functions in 4, 8 and 12 months periods. In the action-reaction functions of the TVPVAR model, it was observed that the shocks at the 4, 8 and 12-month periods in Bitcoin energy prices spread with a similar intensity to the Bitcoin price. In the result of the study was observed that Bitcoin energy shocks spread to SP500, Shanghai, Kase and RTSI indexes in all periods, the shocks of the price and the volume shocks spread to these indexes in short periods.

Mahdi Ghaemi Asl, Oluwasegun B. Adekoya, Muhammad Mahdi Rashidi

No abstract is available for this record.

Fatih Ecer, Adem Böyükaslan, Sarfaraz Hashemkhani Zolfani

Blockchain technologies, which form the basis of Industry 4.0, paved the way for cryptocurrencies to emerge as technological innovation in the technology age. Recently, investors worldwide have been interested in cryptocurrencies with increasing acceleration due to high earning expectations though they have no backing and intrinsic value. As such, this paper seeks to identify the most proper cryptocurrencies from an investment standpoint in our technological era. Fifteen well-known cryptocurrencies with the highest market capitalization are evaluated as per sixteen factors. An intuitionistic fuzzy set-driven methodology incorporating Evaluation Based on Distance from Average Solution (EDAS), Multi-Attributive Ideal Real Comparative Analysis (MAIRCA, and Measurement of Alternatives and Ranking according to COmpromise Solution (MARCOS), which is the study’s prominent novelty, has been applied to provide a strong group decision vehicle for cryptocurrency selection. Notwithstanding, although the results obtained with the three approaches are highly consistent, investors would not like to doubt the instrument they will invest in. The Borda count is then applied to obtain a compromise for the rankings obtained from each approach. As per our findings, Ethereum, Tether, and Bitcoin are the most suitable cryptocurrencies, whereas reliable software, ease of inclusion in the wallet, and stability are the foremost factors to consider when investing in cryptocurrencies. The findings are further discussed in detail from a financial perspective. The proposed approach could be employed to select different investment instruments in future studies.

Shicheng He

In the changing circumstances and the conflict between Russia and Ukraine, International crude oil prices rose sharply in the short term. This study will review the existing literature on the reason for the fluctuation of international crude oil prices and the dynamic change of Bitcoin, Tether, and Ethereum. This paper will also empirically evaluate the impact of fluctuation of international crude oil prices on the yield of electronic cryptocurrency. This research finds that the increase of futures crude oil prices will have a positive impact on the yield of electronic cryptocurrency, but this impact is short-term. Additionally, the growth of crude oil prices will not lead to the increase in the daily volatility of electronic cryptocurrency.

D. Post, C. Cipollini

This article aims to explore the fundamental elements of a blockchain-based tax system by approaching the research question of when to use blockchain for tax. The authors, after introducing the basics of blockchain technology, address the conceptual theoretical perspective by identifying the preconditions under which blockchain can concretely represent a valuable opportunity for tax. In this respect, the analysis starts from the systematic literature review and also covers the different points of view from which to consider the development of a blockchain-based tax system, including the tax administration’s perspective, the taxpayer’s perspective, and the ecosystem perspective. Furthermore, the article addresses the empirical analysis of the current blockchain pilot projects in the tax domain; in this respect, the objective is to verify whether and how each use case concretely addresses the above preconditions. The authors also discuss some future possibilities for more blockchain-based use cases having regard to revenue sourcing rules under the OECD Pillar One proposal and transfer pricing control. In the conclusions, the authors argue that, to comply with the principle of tax efficiency, blockchain-based use cases for tax should always comply with the preconditions identified under the present study.

Muhammad Abubakr Naeem, Sitara Karim, Aviral Kumar Tiwari

No abstract is available for this record.

Lê Thanh Hà, Nguyen Thi Hong Nham

No abstract is available for this record.

Panisara Phochanachan, Nootchanat Pirabun, Supanika Leurcharusmee, Woraphon Yamaka

This study analyzes whether Bitcoin, gold, oil, and stock have the ability to hedge against inflation in high cryptocurrency adoption countries in the periods from January 2010 to March 2021. It is hypothesized that the assets behave differently and thereby respond differently to inflation in different market conditions. Therefore, we employ the Markov Switching Vector Autoregressive to examine these assets’ hedging ability against inflation in both stable and turbulent market regimes. Our main findings are threefold: We show that there exists a structural change and nonlinear relationship between the returns of hedging assets and inflation. Second, all assets can hedge against inflation more effectively in the short run than in the long run. We find that the inflation hedging ability of these assets are weak in the long run for both market regimes. We also find some evidence that the rigidity between the assets and inflation is relatively high in the stable regime. Third, according to the impulse response analysis, we also find that the responses of assets to inflation shock are heterogeneous across two market regimes.

Lütfü SİZER, Yunus YILMAZ

It is possible to define uncertainty as the variability of conditions, the ambiguity and obscurity of statements and events. Uncertainty, for whatever reason, affects the economy in different ways. Uncertainty causes people to be more concerned about their future income. Various estimation and methods have been developed in recent years to calculate the uncertainty, which is equivalent to the concept of uncertainty. These indices, in which economic and political uncertainties are calculated, appear as a form of calculation that also includes political discourses along with financial risk. The aim of this study is to examine the causality relationship between the Global economic political uncertainty index and Bitcoin electricity consumption. For this purpose, the Toda-Yamamoto causality test was applied using data from the period 2011:M7-2022:M1. According to the obtained Toda-Yamamoto causality test findings, Granger causality relationship has been determined both from the global economic-political uncertainty index to Bitcoin electricity consumption and from Bitcoin electricity consumption to the global economic-political uncertainty index.

Volkan Öngel

Yeni finansal varlıklar ile klasik yatırım enstrümanları arasındaki ilişkilerin önemi artmaktadır. Çalışmada Diks ve Panchenko Doğrusal Olmayan Nedensellik Testi kullanarak Bitcoin, Ethereum fiyatları ve borsa endeksleri arasındaki nedensellik ilişkileri incelenmektedir. Çalışma dönemi covid-19 pandemisinin Türkiye’de ilan edildiği tarihten başlayarak 11/03/2020-06/04/2022 arasındaki günlük frekanstaki verileri kapsamaktadır. Böylece pandemi süreciyle birlikte küresel çaplı krizlerde kripto para birimleri ile küresel finans piyasaları arasındaki ilişkinin incelenmesi hedeflenmiştir. Çalışma literatürde özellikle Ethereum ile ilgili yapılmış çalışmaların kısıtlı olması sebebi ile diğer çalışmalardan ayrılmaktadır. Kullanılan doğrusal olmayan nedensellik analizi sonuçlarına bakıldığında, dünya borsa endeksi ile Bitcoin fiyatı arasında ve Asya borsa endeksi ile Ethereum fiyatı arasında çift yönlü nedensellik ilişkisi olduğu tespit edilmiştir. Ayrıca Bitcoin fiyatına Avrupa ve ABD borsa endekslerinden tek yönlü nedensellik olduğu görülmektedir. Aynı zamanda Bitcoin fiyatından da Asya borsa endeksine tek yönlü nedensellik ilişkisi mevcuttur. Ethereum fiyatından ise Avrupa borsa endeksine doğru tek yönlü nedensellik ilişkisi söz konusudur.

Wanjun Xia, Muntasir Murshed, Zeeshan Khan, Zhenling Chen · 5 authors

No abstract is available for this record.

Achraf Ghorbel, Sahar Loukil, Walid Bahloul

Purpose This paper analyzes the connectedness with network among the major cryptocurrencies, the G7 stock indexes and the gold price over the coronavirus disease 2019 (COVID-19) pandemic period, in 2020. Design/methodology/approach This study used a multivariate approach proposed by Diebold and Yilmaz (2009, 2012 and 2014). Findings For a stock index portfolio, the results of static connectedness showed a higher independence between the stock markets during the COVID-19 crisis. It is worth noting that in general, cryptocurrencies are diversifiers for a stock index portfolio, which enable to reduce volatility especially in the crisis period. Dynamic connectedness results do not significantly differ from those of the static connectedness, the authors just mention that the Bitcoin Gold becomes a net receiver. The scope of connectedness was maintained after the shock for most of the cryptocurrencies, except for the Dash and the Bitcoin Gold, which joined a previous level. In fact, the Bitcoin has always been the biggest net transmitter of volatility connectedness or spillovers during the crisis period. Maker is the biggest net-receiver of volatility from the global system. As for gold, the authors notice that it has remained a net receiver with a significant increase in the network reception during the crisis period, which confirms its safe haven. Originality/value Overall, the authors conclude that connectedness is shown to be conditional on the extent of economic and financial uncertainties marked by the propagation of the coronavirus while the Bitcoin Gold and Litecoin are the least receivers, leading to the conclusion that they can be diversifiers.

Jiahao Zhang, Jingyi Li, Duoduo Ye, Chuanqing Sun

To reduce the carbon emission intensity of resource-based cities and strengthen the sustainable development of these cities, firstly, blockchain technology is analyzed. Secondly, the development of the digital economy is discussed in digital resource-based cities. Finally, according to blockchain technology, a model of carbon emissions trading in the digital economy is designed, and the specific impact of the digital economy on carbon emissions trading is studied according to the model. The research results show that the mean value of the development index of the digital economy (digital) is −0.0168, the maximum value is 4.2560, the minimum value is −1.3429, and the standard deviation is 0.9572, indicating that the quality of digital economy development varies greatly among different regions. And according to the results of the digital model, it is found that the regression coefficient of the variable digital is significantly negative at the 1% level, showing that the digital economy will obviously suppress the carbon emission intensity of cities. After replacing the explained variables, the coefficient of the digital economy is still significantly negative. It indicates that the development of the digital economy can effectively suppress the carbon emission intensity of urban. Therefore, the designed model of carbon emissions trading under the blockchain technology can not only provide a secure platform for carbon emissions trading but also provide more comprehensive trading reference information for carbon emissions trading. It provides technical support for reducing the carbon emission intensity of resource-based cities and also contributes to the development of resource-based cities.

Zaghum Umar, Wafa Alwahedi, Adam Zaremba, Xuan Vinh Vo

No abstract is available for this record.

Susilo Nur Aji Cokro Darsono, Wing‐Keung Wong, Tran Thai Ha Nguyen, Dyah Titis Kusuma Wardani

This study examines the effect of economic policy uncertainty (EPU) on sustainable investment returns by using panel data of stock market returns and the EPU index from twelve countries for the period from April 2015 to December 2020. In addition, precious metal prices, energy prices, and cryptocurrency prices are used as control variables. To do so, we investigate the impact of EPU, gold prices, oil prices, and Bitcoin prices on stock market returns by using the panel autoregressive distributed lag (ARDL) model to examine both the long-run correlation and short-run effect. Our findings show that EPU, gold prices, oil prices, and Bitcoin prices have a time-varying significant impact on sustainable stock market returns. We discovered that EPU has a significantly negative impact on the returns of the sustainable stocks in the markets over the long run. In contrast, the rise of the gold price, oil price, and Bitcoin price have a significantly positive impact on the returns of the sustainable stocks in the twelve sustainable markets in the long run. On the other hand, EPU in Singapore, Spain, the Netherlands, and Russia has a significant short-run impact on market returns in each country. Based on the findings, managers and investors in the sustainable stock markets are highly recommended to pay more attention to the volatility of EPU, gold prices, oil prices, and Bitcoin prices in the short run to control the risk of returns in the sustainable stock market. Furthermore, policymakers must closely monitor the movement of the EPU index, as it is a major driver of sustainable stock market returns.

Matin Keramiyan, Korhan K. Gökmenoğlu

Purpose This paper aims to examine the predictive power of the volume of Economic Uncertainty Related Queries and the Macroeconomic Uncertainty Index on the Bitcoin returns. Design/methodology/approach Data consists of 118 monthly observations from September 2010 to June 2020. Due to the departure of series from Gaussian distribution and the existence of outliers, the authors use the quantile analysis framework to investigate the persistency of the shocks, the long-run relationships and Granger causality among the variables. Findings This research provides several important findings. First, the substantial differences between conventional and quantile test results stress the importance of the method selection. Second, throughout the conditional distribution of the series, stochastic properties of the variables, long-run and the causal relationships between the variables might be significantly different. Third, rich information provided by the quantile framework might help the investors design better investment strategies. Originality/value This study differs from the previous research in terms of variable selection and econometric methodology. Therefore, it presents a more comprehensive framework that suggests implications for empirical researchers and Bitcoin investors.

Inzamam Ul Haq, Apichit Maneengam, Supat Chupradit, Chunhui Huo

This article aims to explore the co-movement of daily returns among S&P green bonds (GB/GBs), the top five sustainable cryptocurrencies, Bitcoin, the Dow Jones Sustainability World Index (DJSWI) and the Dow Jones Sustainability Emerging Market Index (DJSEMI) to determine whether GBs, Bitcoin and sustainable cryptocurrencies are truly sustainable; in addition, it investigates hedging and diversification opportunities. Using a partial wavelet coherence framework to capture the bivariate co-movement, our findings show strong (weak) positive co-movements among GB (sustainable cryptocurrencies) and DJSWI returns, where GBs (sustainable cryptocurrencies) have a heterogeneous leading role in the short-term and long-term horizons. Results indicate moderate positive (negative) co-movement among GBs and sustainable cryptocurrencies (Bitcoin) and DJSWI in the short run (long run). Overall, the results show GB (sustainable cryptocurrencies) acts as a diversifier for Bitcoin and sustainable cryptocurrencies in most cases (DJSWI). However, increasing Bitcoin returns adversely impacts the DJSWI in the long run. Findings are equally imperative for green investors, crypto traders and policymakers, where investors and traders can earn financial and social returns, and policy-makers can deploy suitable policies for the development of sustainable cryptocurrency mining processes. The role of Bitcoin is alarming for the United Nations Sustainable Development Goals and global greener economy.

Yishu Liu, Ziyuan Li, Lihua Huang

Blockchain technology is considered to be a disruptive technology that has real potential for change after steam engines, electricity, and the Internet. However, in terms of power generation, the current level of hydropower development in my country is only 39%. Compared with developed countries, there is still a big gap and a high development space. This article proposes a research on the application of blockchain technology in smart sustainable energy business models, studies the conversion path of sustainable energy systems, introduces integrated energy service blockchain technology, and builds a sustainable energy transition model. The selection of practical dimensions requires both Quantitative indicators also require cultural and behavioral qualitative indicators; finally, through the analysis of social development trends and government policies, the external variable landscape signals are parameterized. Sustainable energy rather than fossil energy is the energy of the future. Weak landscape signals have significantly weakened the development of the sustainable energy niche: the proportion of coal consumption has declined slowly. Although it has transformed from a system to a niche, it has always been higher than that of other energy types. Only with long-term landscape pressure, positive changes to sustainable energy technologies and infrastructure, and continuous changes in consumer preferences, can sustainable energy ultimately dominate.

Maoyu Dai, Md. Qamruzzaman, Anass Hamadelneel Adow

The aim of this study is to gauge the impact of global economic policy uncertainty and natural resource prices, that is, oil prices and gold prices, on Bitcoin returns by using monthly data spanning from May 2013 to December 2021. The study applies ARDL and nonlinear ARDL for evaluating the symmetric and asymmetric effects of Global Economic Uncertainty (GU), oil price (O), and natural gas price on Bitcoin volatility investigated by using the ARCH-GARCH-ERAGCH and non-granger causality test. ARDL model estimation establishes a long-run cointegration between GU, O, G, and Bitcoin. Moreover, GU and oil price exhibits a negative association with Bitcoin and positive influences running from gold price shock to Bitcoin in the long run. NARDL results ascertain the long-run asymmetric relations between GU, oil price, gold price (G), and Bitcoin return. Furthermore, GU’s asymmetric effect and positive shock in gold price negatively linked to Bitcoin return in the long run, whereas asymmetric shock in oil price and negative shocks in gold price established a positive linkage with Bitcoin. The results of ARCH effects disclose the volatility persistence in the variables. The causality test reveals that the feedback hypothesis explains the causal effects between GU and Bitcoin and unidirectional causality running from Bitcoin to gold price and oil price to Bitcoin.

Tuğrul KANDEMİR, Halilibrahim Gökgöz

Bu çalışmanın amacı Bitcoin’in emtialar için çeşitlendirici rolünün ve emtialarla etkileşiminin incelenmesidir. İnceleme kapsamında Bitcoin, altın, gümüş, emtia endeksi, ham petrol ve enerji emtiaları endeksi değişkenlerinden oluşan 17.09.2014 - 24.11.2021 dönemini kapsayan günlük veri seti Garman-Klass serilerine dönüştürülmüş ve dinamik koşullu korelasyon modelleri uygulanmıştır. Uygulama sonucunda Bitcoin ile emtialar arasındaki etkileşimi test etmek için en uygun modelin cDCC-GARCH olduğu gözlenmiş ve Bitcoin ile emtialar (gümüş hariç) arasındaki etkileşimin negatif yönlü; emtiaların kendi aralarındaki etkileşimin pozitif yönlü olduğu tespit edilmiştir. Bulgular, Bitcoin’in emtialar için (gümüş hariç) diğer emtialara göre daha iyi bir çeşitlendirici olduğunu ve Bitcoin’in emtia bulunduran portföye dahil edildiğinde hedge etme görevi üstlendiğini göstermektedir.

Radosław Miśkiewicz, Krzysztof Matan, Jakub Karnowski

The rapid growth of information technology and industrial revolutions provoked digital transformation of all sectors, from the government to households. Moreover, digital transformations led to the development of cryptocurrency. However, crypto trading provokes a dilemma loop. On the one hand, crypto trading led to economic development, which allowed attracting additional resources to extending smart and green technologies for de-carbonising the economic growth. On the other hand, crypto trading led to intensifying energy sources, which provoked an increase in greenhouse gas emissions and environmental degradation. The paper aims to analyse the connections between crypto trading, economic development of the country, renewable energy consumption, and environmental degradation. The data for analysis were obtained from: Our World in Data, World Data Bank, Eurostat, Ukrstat, Crystal Blockchain, and KOF Globalisation Index. To check the hypothesis, the paper applied the Pedroni and Kao panel cointegration tests, FMOLS and DOLS panel cointegration models, and Vector Error Correction Models. The findings concluded that the increasing crypto trading led to enhanced GDP, real gross fixed capital formation, and globalisation. However, in the long run, the relationship between crypto trading and the share of renewable energies in total energy consumption was not confirmed by the empirical results. For further directions, it is necessary to analyse the impact of crypto trading on land and water pollution.

Giuseppe Basile

This work investigates the factors determining the Kazakh energy crisis which occurred in the second half of 2021. From the correlation observed among some data gathered to the purpose of the analysis, the relevant role played in this by cryptocurrency mining factories is identified. Beginning from June 2021, a massive number of them were relocated to Kazakhstan from the Popular Republic of China (PRC) because of normative restrictions introduced by the latter. The work also develops a reflection aimed at understanding the economic and environmental impact which has been produced by this relocation. The descriptive analysis will proceed as follows: the first section of the article will focus on the regulation of cryptocurrencies; the second section will focus on final electricity consumption and sup-porting empirical evidence and is closely related to the third and last section; the latter will focus on primary macro-economic indicators in relation to the increase in CO2 emissions in the Kazakh republic. To this end, it is useful to demonstrate a correlation between the energy crisis, the transfer of cryptocurrency mining to Kazakhstan, and to fuel the discussion regarding the need for a supranational institution with the aim of codifying a common international legislation, thus reinforcing the efforts made so far in this direction. Present and future implications and scenarios de-rived by the analysis are also introduced.

Samia Nasreen, Aviral Kumar Tiwari, Zhuhua Jiang, Seong‐Min Yoon

In this study, the dependence between Bitcoin (BTC) and economic policy uncertainty (EPU) of USA and China is estimated by applying the latest methodology of quantile cross-spectral dependence. Daily data comprising a total of 1947 observations and covering the period of 1 October 2013 to 31 January 2019 are used in this study. The findings indicate that a positive return interdependence between BTC and EPU is high in the short term, and this dependence decreases as investment horizons increase from weekly to yearly. The information on the time-varying and time–frequency structure of interdependence is also extracted by applying wavelet coherence analysis. The estimated results of wavelet coherence suggest that the correlation between BTC and EPU is positive during a short-term investment horizon. Finally, the frequency domain Breitung and Candelon causality test is applied, and results show the evidence of insignificant causality between Bitcoin and EPU. Overall, the findings highlight the diversification benefits of Bitcoin during the period of uncertainty.