OlaOluwa S. Yaya, Ephraim A Ogbonna, Olusanya E. Olubusoye
The present paper investigates persistence and dependence of Bitcoin on other popular alternative coins. We employ fractional integration approach in our analysis of persistence while a more recent fractional cointegration technique in VAR set-up, proposed by Johansen and co-authors is used to investigate dependency of the paired variables. Having segregated the series into periods before crash and those after the crash as determined by Bitcoin pricing, we obtain results of interests. Higher persistence of shocks is expected after the crash due to speculations in the mind of cryptocurrency traders, and more evidences of non-mean reversions, implying chances of further price fall in cryptocurrencies. Cointegration analysis between Bitcoin and alternative coin exists during both periods, with weak correlation observed mostly in the post-crash period. We hope the findings will serve as guide to investors in cryptocurrency.
With the popularity of cryptocurrency like bitcoins in recent years, the social circles have been confusing whether cryptocurrency is real money essentially. Lots of voices have clarified the question from the traditional view that regards the nature of money as commodity. However, historical evidences have proved that the traditional theory deviates from the real nature of money originating from debt and is not exactly true. State Theory of Money holds the debt-based opinion on the nature of money and regards the nature of money as the debt of state, which is allowed to be the payment of tax. Therefore based on this, the paper analyzes the debt nature of money and the characteristics of cryptocurrency like bitcoins, and draws the conclusion that cryptocurrency like bitcoins is not accepted by the state as the payment of tax, not the national debt, so not the currency.
This paper attempts to establish that some inherent features of the Bitcoin price can be exploited to produce better forecast results for stock prices. It does so by constructing predictive models for stock prices of G7 countries with symmetric and asymmetric prices of Bitcoin. The underlying statistical properties of Bitcoin prices such as persistence and conditional heteroscedasticity are captured in the estimation process using the Westerlund and Narayan (2015) estimator that allows for such effects in forecasting. There are two striking findings from the analysis. First, the results suggest that accounting for asymmetries is more likely to enhance the predictive power of Bitcoin in forecasting stock prices regardless of the data sample and forecast horizon. Secondly, the Bitcoin-based predictive model for stock prices, particularly the asymmetric variant, outperforms the Fractionally Integrated Autoregressive Moving Average (ARFIMA) model. While there are concerns as to whether the cryptocurrencies are veritable substitutes to the conventional financial assets, their close link with the developed stock exchanges such as those in the G7 countries suggests that they share some common characteristics such as news effects [asymmetries] which can be exploited when forecasting the behaviour of stock prices.
Blockchain technology makes it more feasible for individuals to exit political-socioeconomic systems at the level of the system itself and elect to accede freely to institutional systems which formulate, promulgate, keep and verify institutions and public records without a centralised authority. This essay investigates the dynamic of such a society in which political-socioeconomic systems may be organised using blockchain technology. We propose a theory of society as an evolutionary system in which the unit of selection is the institutional system associated with a particular blockchain or the state and selection pressures are applied by individuals deciding to interact within them and have their interactions entered into the public record. We establish the conditions under which institutions will thus be selected by considering the limits to substitutability and discover that any institutional system must meet requirements and provide sufficient complementarities in order to be selected and retained by the evolutionary process.
espanolLos conceptos de cadenas de bloques (blockchains) y contratos inteligentes (smart contracts) ofrecen una alternativa sostenible en educacion superior. Desde este objetivo, se presenta una revision de ambos conceptos y su relacion con los terminos bitcoin, ledger, edublock y educoin. En un segundo momento, se atiende a las redes en educacion superior basadas en tecnologia de cadenas de bloques, su vinculo con los contratos inteligentes y las posibilidades a dia de hoy. catalaEls conceptes de cadenes de blocs (blockchains) i contractes intel·ligents (smart contracts) ofereixen una alternativa sostenible en educacio superior. Des d’aquest objectiu, es presenta una revisio d’ambdos conceptes i la seva relacio amb els termes bitcoin, ledger, edublock i educoin. En un segon moment, s’aten a les xarxes en educacio superior basades en tecnologia de cadenes de blocs, el seu vincle amb els contractes intel·ligents i les possibilitats a dia d’avui. EnglishThe concepts of blockchains and smart contracts at the university offer a sustainable alternative. From this aim, in a first moment, it presents a review of concepts and their connection with the terms bitcoin, ledger, edublock and educoin as well. In a second moment, it shows the social networks based on the technology of blockchains and nowadays how are they linked on the subject of smart contracts and possibilities.
The aim of this paper is to analyze the demand of both traditional and new media of exchange – as cryptocurrencies and central bank digital currencies – proposing a novel specification of the demand for money. In this specification, the medium of payment (MOP) has three properties: the first two are the MOP’s standard functions as a medium of exchange and as a store of value, while the third is a novel function as a store of privacy (anonymity value). The proposed framework is tested using a laboratory experiment. Our results show that anonymity matters, but less of the other two properties; at the same time, the presence of anonymity increases the overall appeal of a MOP, particularly if the individuals are risk prone; given anonymity, the sacrifice ratio between liquidity risk and opportunity cost are relatively high.
ПРЕИМУЩЕСТВА И НЕДОСТАТКИ РАЗВИТИЯ КРИПТОВАЛЮТ О. Ю. КрасильниковКрасильников Олег Юрьевич, доктор экономических наук, профессор кафедры экономической теории и национальной экономики, Саратовский национальный исследовательский государственный университет имени Н
The cryptocurrency market has become increasingly accessible and significant to the financial markets. This is understood by not only major financial firms, governments, and investors, but also the individual market participants globally. We delve into the history of cryptocurrency to begin our examination of the Bitcoin, Ethereum and Litecoin. Understanding the circumstances of their humble beginning, the purpose it served, and the path of their evolution, helps us to create a fuller understanding of its functions, its limitations, and the drivers of its value. This enables us to identify key market factors and variables for deployment within a robust approach for pricing and product offerings associated with Bitcoin, Ethereum and Litecoin. In order to fully capture the volume, variety, and velocity of data associated with these cryptocurrencies, the use of machine learning can provide an advantageous approach to model development for cryptocurrency pricing. This paper provides the development of a promising initial prototype pricing model for Bitcoin, Ethereum and Litecoin. Our proposed pricing models resulted in an average 7% difference between actual and predicted price for Bitcoin and Ethereum, and a 4% difference for Litecoin along a timeline, through the use of machine learning and deep learning, artificial neural networks using the contributing factors of key variables and how they influence and capture pricing and investor behaviour. We also identify theinclusion of additional datasets, such as sentiment market data into the model, along with larger exploration of Blockchain and raw transaction mining to increase the accuracy and forecasting ability of the model.
This report is the result of an investigation into current possibilities to use blockchain or other distributed ledger technologies for identification and authentication in an Internet-of-Things (IoT) setting. During the course of the project, several different distributed ledgers have been examined and their strengths and weaknesses analyzed with respect to their potential use in connected devices with constrained resources. After investigating whether there are any solutions providing identification and authentication through distributed ledgers available today, one was chosen for implementation in a Proof of Concept (PoC), where the solution was tested on a certain piece of hardware representing an IoT-device. The performance of the PoC was then analyzed and evaluated. The results of the literature study as well as the tests on the PoC led to the conclusion that a number of factors prevent such a solution from being a viable alternative to current solutions. However, as the technology involved is still in its infancy and developing rapidly, this verdict may be subject to change in the future. The advancements required for such a solution to become viable are: improved consensus models, light nodes and possibly fundamentally new and improved distributed ledger technologies.
The blockchain technology is seen as revolutionary technology, which obtains attention from various fields in many countries. In China, students information in higher education needs to be managed by the third part-China Credentials Verification. Although this website brings a lot of convenience to students, it still exists some disadvantages. Through analyzing the application of blockchain technology in finance field, the key feature -decentralized can also be effectively applied in the education field to improve the work efficiency of verifying degree, storing considerable data or transmitting students' information in the way of point-to-point and so on. Through exploring the modern of 'blockchain+education', considerable students' info rmation in database can be stored in the blockchain and can be traced by companies to conveniently query their records. This paper will discuss the application landscape of blockchain technology in higher education in new view.
The relationship between economic growth, growth volatility and financial sector development continues to attract attention in the theoretical and empirical literature. Over time, some studies hypothesize that finance has a causal linear relationship with growth. Recently several other authors contradict this claim and argue that the relationship that exists between finance and growth is nonlinear. We investigate these claims for Nigeria for the period between 1970 and 2015, using semi-parametric econometric methods, Hansen sample splitting techniques and threshold estimator. We observed no evidence of ‘Too much finance’ as claimed by many researchers in recent times. We show that the relationship between financial development and economic growth is U-shaped. This is equally true for the relationship between financial development and growth volatility. We also discuss policy implications of our findings and recommend financial innovations and decentralization of stock exchanges to boost access to financial services, in addition, improved regulation to enhance financial market efficiency.
Society is progressing at a rapid pace. As math and science evolve, new technologies begin to utilize these advances and create something novel. These technological changes are revolutionizing not only the science-oriented industries, but also the humanities. One such example falls within the legal arena. More specifically, the exciting advent of smart contracts and their use of technological changes are altering the way law is processed and practiced. However, as is often the case, new technological innovations spur certain growing pains. The implementation of smart contracts is proving no different. Some view the smart contract as the start of a more ideal society. With the aid of smart contracts and blockchain technology, machines can finally be equipped to fulfill some of the most basic human functions. Not only would business transactions always occur in a timely, seamless, and cost-effective manner, but also more mundane life tasks, such as ordering laundry detergent, could soon be done via smart contract technology. As exciting as these changes may be, smart contracts and the blockchain technology behind them are still immature. Before this legal phenomenon is widely accepted, there needs to be more advancement in not only the code that creates the technology, but also in the law and its regulations. As it stands today, smart contracts are most likely to be accepted only in part, and heavily tailored to meet each contracting party’s needs. This Note will start by giving an overview of the technology needed to implement smart contracts—blockchain technology—and an explanation of how smart contracts fit within the framework of a blockchain. Next, this Note will discuss some of the major issues smart contracts face. Such issues include: the need to translate natural language into computer code, the traditional concept of contracting in conjunction with the effect of smart contracts on traditional legal notions, and reoccurring enforcement issues. After discussing smart contracts and the current issues barring wide-spread acceptance, this Note will explore the future of smart contracts in the legal arena by analogizing such an electronic contracting change to the now-widely accepted electronic clickwrap agreements. Additionally, this Note will explore recently enacted state statutes that create favorable legal conditions for smart contracts and what impact, if any, these statutes may have upon federal legislation. Furthermore, this Note will analyze the lack of and potential need for regulations regarding smart contracts. In an attempt to make smart contracts acceptable, this Note will suggest future regulations focus on two components of smart contracts. As it will be discussed, regulations should require smart contracts to utilize a permissioned ledger and focus on ensuring the legal requirement of mutuality between the two contracting parties. Lastly, this Note will conclude that although the publicity surrounding smart contracts is exciting and innovative, this form of contracting is likely to remain in a controlled business environment with implementation under select circumstances.
This thesis will examine the ways in which various cryptocurrencies have impacted certain traditional crimes. While crime is always evolving with technology, cryptocurrencies are a game changer in that they provide anonymous and decentralized payment systems which, while they can be tracked in a reactive sense via the blockchain, are seen by criminals as having better uses for them than traditional fiat currencies, such as the ability to send money relatively fast to another party without going through an intermediary, or the ability to obscure the origin of the money for money laundering purposes. Every week there are new cryptocurrencies flooding the market, and it doesn’t look like it will abate any time soon. Blockchain technology, the underlying technology behind all cryptocurrencies, has uses that far surpass just the currency aspect. Criminals also see the potential that sending money anonymously, without a middleman beholden to regulations and tracking those transactions has. Any new technology while being revolutionary, will always trickle down to seedier elements of society who will always find a use for it. This paper will look at how cryptocurrencies have impacted drug trafficking, money laundering, and ransomware. I will also explore a new kind of crime called cryptojacking that has become possible because of cryptocurrency mining. Law enforcement may be playing a reactive and not a proactive role in the age of cryptocurrencies, but this paper will provide information that can be useful for law enforcement and applicable to their investigations.
'One must work, if not from inclination, at least from despair, since, as I have fully proved, to work is less wearisome than to amuse onesel’ – Charles Baudelaire \n \nOnce we have been introduced to the concept of interpassivity, once we have recognized it in our own actions with an amused smile – for instance, to use Robert Pfaller’s wonderful example, in the pleasure we as academics derive from photocopying books, from the delegation of our pleasure of reading to the machine, from staging the illusion of reading, an illusion for which a naïve observer could fall2 – we suddenly see the world through a new lens. Interpassive phenomena pop up all around us and with a childish pleasure we exclaim: interpassivity, again! Therefore, the theory of interpassivity must be highly credited not only for the introduction of a valuable concept and a theoretical tool, but also for being a source of pleasure (consisting in recognizing previously obscured sources of pleasure and finally being able to name them).
the development of digital economics has taken on vital importance nowadays. Entrepreneurs in their business actively use digital technologies by which they enter into civil law relationships of different nature. Cryptocurrency usage in commerce is one of the most topical issues discussed in a legal community. The article analyzes an issue of legal regulation of cryptocurrency which logically follows digital technologies and digital economics development. Presently there are no legislative mechanisms of cryptocurrency turnover and usage regulation. The main aim of the article is to develop legal suggestions for cryptocurrency effective regulation. With this aim the author has analyzed cryptocurrency development trend in the Russian Federation, studied experience of foreign countries (USA, Germany, France, China and Japan). In his article the author offers for the legal community a single matrix of the cryptocurrency legal regulation which comprises three levels: international, regional and national.
This article concerns the correlation between criminal law and procedure and the technical, technological and civilisation progress in the form of possibility to stand bail in Bitcoin virtual currency (cryptocurrency) in the criminal procedure. The article, firstly, presents introductory remarks to provide information about the analysed subject. Secondly, there is an outline of the essence and mechanism of applying bail in criminal procedure. Thirdly, the process transformation of money as an element of assets is presented. Fourthly, the article presents a categorisation of digital money and an economic qualification of Bitcoin. The above provides a background for argumentation relating to the legal qualification of Bitcoin as money and presentation of the basic threats connected with this cryptocurrency. The article ends with a brief summary containing the authors’ view on the subject of these reflections and a proposal of the desired legal amendments, addressed to the Polish legislator.