Ewa FederâSempach, Piotr Szczepocki, Joanna BogoĆÄbska
Abstract This article investigates five safe-haven asset responses from 2014 to 2022, including the unprecedented COVID-19 crisis, Russian invasion of Ukraine, and sharp US interest rate increases of 2015 and 2022. We apply the unique approach of the multivariate factor stochastic volatility (MSV) model, which is extremely efficient for financial market analysis and allows us to conduct dynamic factor analysis of safe-haven relationships that cannot be observed directly. The research sample consists of five prospective safe-haven assetsâgold, bitcoin, the euro, the Japanese yen, and the Swiss francâand five primary world stock market indicesâthe S&P 500, Financial Times Stock Exchange (FTSE) 100, DAX, STOXX Europe 600, and Nikkei 225. Our findings are useful for investors searching for the best safe-haven assets among gold, bitcoin, and currencies to hedge against financial turmoil in global stock markets. Our unique findings suggest that safe-haven effects work differently for gold and the yen; that is, the Japanese yen acts as the strongest safe haven across all stock indices. Bitcoin is not a strong safe-haven currency since it has zero days of negative correlations with the considered stock indices, but it is a weak safe-haven during times of financial distress. Consequently, we state that strong and weak safe-haven properties vary across time and place. The novelty of our study lies in the methodological complexity of the MSV model (used for the first time to find the best safe-haven asset properties), dynamic factor analysis, a long-term research sample covering the Russian invasion of Ukraine in 2022, and an international investor perspective focusing on the worldâs leading stock markets. We extend earlier studies by analyzing the interrelations of the worldâs leading stock market indices with five potential safe-haven assets during the long period of 2014â2022 and using a unique dynamic factor analysis to show the differentiated behaviors of the Japanese yen and gold. Additionally, the main innovative contribution is a new framework of weak and strong safe-haven asset classifications not previously applied in the literature.
This paper analyzes the Execution Tickets proposal on Ethereum Research, unveiling its potential to revolutionize the Ethereum blockchain's economic model. At the core of this proposal lies a novel ticketing mechanism poised to redefine how the Ethereum protocol distributes the value associated with proposing execution payloads. This innovative approach enables the Ethereum protocol to directly broker Maximal Extractable Value (MEV), traditionally an external revenue stream for validators. The implementation of Execution Tickets goes beyond optimizing validator compensation; it also introduces a new Ethereum native asset with a market capitalization expected to correlate closely with the present value of all value associated with future block production. The analysis demonstrates that the Execution Ticket system can facilitate a more equitable distribution of value within the Ethereum ecosystem, and pave the way for a more secure and economically robust blockchain network.
This study aims to examine the spillover effects of return and volatility between three different assets (Bitcoin, Gold, and Nasdaq) using GARCH-ARMA models. The data is taken from monthly closing prices from January 2015 to February 2024 through Investing.com. The analysis focuses on understanding how these three assets interact regarding the spillover effect of return and volatility, particularly during periods o f economic uncertainty. Our findings indicate that spillover effects o f return are visible from Bitcoin to Nasdaq, Nasdaq to Bitcoin, and Nasdaq to Gold. In addition, spillover effects o f volatility are visible from Gold to Bitcoin, Bitcoin to Nasdaq, Nasdaq to Bitcoin, and Nasdaq to Gold. Our finding highlights the dynamic relationship between traditional and digital assets, emphasizing Bitcoin's potential role as a financial hedge likely to Gold and Nasdaq.
The article, through the inductive methodology, seeks to investigate some of the innovations that have been employed by the society. This investigation is done through a literature review in order to answer the question: is there any common element among the innovations? The hypothesis proposed is that there is a common element. That element would be the search for optimization, derived from the Law of Least Action. The concepts investigated cover science and technology, algorithm and digital, artificial intelligence, machine learning, decentralization and Distributed Ledger Technology, Blockchain, smart contracts, industrial revolution 4.0 and industrial revolution 5.0. The conclusion attempts to generalize the results found.
The relevance of the research is confirmed by the fact that, with the widespread distribution of ecosystems as high-tech heirs of clusters and platforms, the issues of financing business ecosystems are rarely studied in the scientific literature and do not receive the necessary theoretical generalization. The purpose of the research is to systematize the available forms of financing in industrial business ecosystems within a united digital space. The objectives of this research are defined as clarifying the need to include financing functions in the toolkit of emerging industrial business ecosystems and revealing the possibilities of using selected financing methods. The methods of research , on the one hand, are based on the emerging theory of ecosystems, which develops both as a firmâs theory and as ecosystem management, and on the other hand, on a new concept that can be formulated as a fusion of finance, industrialization and digitalization . The results of the research show that there are several approaches to the organization of ecosystem finance. Ecosystems are reported to be equally susceptible to decentralized and centralized (traditional) financing, providing opportunities to create their own decentralized financial environment as well as collaborating with current cryptocurrency-based services. Several forms of financial organization in ecosystems have been identified: a) compensating costs by forming budgets for the creation and ongoing activities; b) attracting ecosystem participantsâ own funds to various forms of lending (including on the basis of financial technologies). It is concluded that the development of financing instruments depends on three factors: 1) government policies to regulate the financial aspects of business ecosystems; 2) the efficiency of using the resources of ecosystem participants; 3) ecosystem interactions with supply chains. It is determined that a completely new theory of business ecosystem finance will be completed only after the exit from the experimental mode of financing business ecosystems.
This research discusses the causal relationship among the exchange rates, 10-year bond yields, and Central Bank policy rates with regard to the countries known as the Fragile Five (F5) by comparing them to global indicators such as gold, Bitcoin price, and the Volatility Index (VIX). The study takes into consideration the bond yields, exchange rates, and interest rates of TĂŒrkiye, India, Indonesia, South Africa and Brazil in terms of their causal relationship with one another. The study also identifies some causal relationships among gold, bitcoin, and VIX with each other as global indicators by using the Toda Yamamoto approach to the Granger causality test. This study has arrived at the conclusion that a causal relationship exists between exchange rates and interest rates for TĂŒrkiye, Indonesia, and South Africa but not for Brazil or India. VIX is the most significant variable, as it is affected by seven different variables, including policy rates and different exchange rates. In addition, none of the variables are seen to Granger cause bitcoinâs price.
The valuation of the cryptocurrency market surpassed three trillion dollars in 2022, underscoring the burgeoning interest in digital currencies and decentralized finance.In response, on June 7, 2022, a bipartisan initiative led to the introduction of the "Responsible Financial Innovation Act," positioning cryptocurrencies as commodities and designating the Commodity Futures Trading Commission as the primary regulatory authority for the cryptocurrency market.Intriguingly, a study by Kim et al. (2022, JABE & IJBR) utilized a non-Euclidean methodology, suggesting that cryptocurrencies, in terms of their price dynamics, resemble securities more than commodities.However, a critical assessment of Kim et al. (2022, IJBR) reveals a methodological gap: the non-Euclidean distances were employed to derive a Euclidean configuration of 28 asset classes via multi-dimensional scaling.This Euclidean structure was subsequently employed for asset class categorization using -means clustering.This approach, while acknowledging the non-Euclidean distances among the 28 asset classes, leverages a Euclidean embedding for classification.In contrast, our research employs data depth to categorize asset classes without resorting to Euclidean embedding.We compare our findings with those of Kim et al. (2022, JABE & IJBR) for a comprehensive understanding.
Economic systems play pivotal roles in the metaverse. However, we have not yet found an overview that systematically introduces economic systems for the metaverse. Therefore, we review the state-of-the-art solutions, architectures, and systems related to economic systems. When investigating those state-of-the-art studies, we keep two questions in mind: (1) What is the framework of economic systems in the context of the metaverse? and (2) What activities would economic systems engage in the metaverse? This article aims to disclose insights into the economic systems that work for both the current and the future metaverse. To have a clear overview of the economic system framework, we mainly discuss the connections among three fundamental elements in the metaverse, i.e., digital creation, digital assets, and the digital trading market. After that, we elaborate on each topic of the proposed economic system framework. Those topics include incentive mechanisms, monetary systems, digital wallets, decentralized finance activities, and cross-platform interoperability for the metaverse. For each topic, we mainly discuss three questions: (a) the rationale of this topic, (b) why the metaverse needs this topic, and (c) how this topic will evolve in the metaverse. Through this overview, we wish readers can better understand what economic systems the metaverse needs and the insights behind the economic activities in the metaverse.
Initially making its name as the backbone technology of Bitcoin, blockchain has been referred to as a distributed ledger, public database, Internet of value, digital infrastructure, network, and platform. Compared with fluctuating cryptocurrency and non-fungible token (NFT) markets, applications of blockchain technology in more diverse business scenarios have received less attention. By analyzing 16 international business use cases under eight categories of blockchain-based solutions, this article offers a contextualized understanding of the potential for blockchain to become a general-purpose technology (GPT). It discusses how the extensiveness, evolvability, and enabling (3Es) aspects of blockchain influence the value, vision, and viability (3Vs) required for successful real-world applications. The article discusses how firms can draw on lessons from failed cases and good practices of existing cases to enhance the 3Vs for blockchain adoption.
Abstract The transition to a circular supply chain (CSC) is a prerequisite to establish sustainability in the supply chain. Blockchainâbased CSC enables stakeholders to effectively manage their decisionâmaking processes, increase revenue, reduce time and costs and ensure information synchronisation. Blockchain startâups play an essential role in facilitating the transition from a linear to a circular economy while supporting the development of CSCs. This research aims to explore the role of blockchain entrepreneurship in the transition to CSC by evaluating circular blockchain startâups. This research contributes to the literature by providing verified roles of blockchain entrepreneurship in the transition to CSC by evaluating the literature and blockchain startâups. Another contribution is that the causal relationships between these roles are analysed. In this study, an integrated threeâstep methodology including Systematic Literature Review (SLR), Qualitative Comparative Analysis (QCA), and Fuzzy DecisionâMaking Trial and Evaluation Laboratory (FuzzyâDEMATEL) methods on the base of the theory of change is proposed. An SLR is performed to determine the roles of blockchain entrepreneurship. Then, a QCA is conducted after identifying the roles for verification by evaluations of use cases of blockchain startâups. Finally, the causal relationships between these roles are interpreted by using FuzzyâDEMATEL. Findings indicate that blockchain entrepreneurship has 12 fundamental roles in facilitating the transition from a linear to a circular economy while supporting the development of CSCs.
Pierluigi Gallo, Eleonora Riva Sanseverino, Giuseppe SciumĂš, Gaetano Zizzo
This paper outlines the European perspective on circularity in the energy sector and details how blockchain could support it. Moreover, while the need for raw materials and e-fuels is increasing (due to the economic, industrial, and societal ecological transformation to slow down the pace of climate change), their supply becomes more and more risky. Therefore, technologies to support tracing and certification are in the spotlight. To achieve resilience to new threats, Europe is focusing on circularity in all fields. Circularity requires the tracing of substances and devices, food, and products, to retrieve and recycle as much as possible. Besides the need to limit the exploitation of the planetâs resources and thus stay within the planetary boundaries, circularity is tightly connected to strategic dependencies on highly unstable or politically distant countries. This issue is further aggravated by the Russia-Ukraine crisis. Digital technologies, like Distributed Ledger Technologies, can well support the implementation of circularity in many fields. The paper identifies challenges and proposes potential solutions related to the implementation of circularity. It also explores the application of circularity principles in the energy sector, with a focus on energy communities. Energy communities involve local stakeholders coming together to generate, consume, and manage renewable energy collectively. Overall, the paper provides insights into the European perspective on ecological transition, highlighting the importance of systemic transformation, resilience, and circularity in addressing climate change and achieving sustainability goals. It explores the role of digital technologies, such as Distributed Ledger Technologies (DLTs), in supporting circular practices and discusses specific applications in the energy sector.
<strong>Purpose: </strong><em>With the emergence of Online Purchasing, Product Identification is an essential model that allows the seller to add a product to a decentralized platform such as Blockchain and allows buyers to purchase the product from the decentralized platform. Fraud products, counterfeiting, and duplication are the current marketplace's major problems. This aims to develop a system for verifying product identification with their information, ownership, and validity detail.</em> <strong>Design/Methodology/Approach: </strong><em>The proposed system applies Extreme Programming (XP) to reduce the risk caused by the fixed-time project using new technology and thus the final project could be delivered in time. Solidity and metamask being new technologies were unstable and to adopt the changes, the agile development model was the best through ABI and the bytecode are deployed into the Ethereum Blockchain.</em> <strong>Findings/Result: </strong><em>This system maintains the buyers, sellers, and product details in a decentralized blockchain platform. This research details the entire product development process from planning, analysis, design, implementation, and testing for systematic online purchasing. Verifying the product ownership and its information to get the original product is the major difficulty in this space, but this research systematically solves some of those problems. This signifies an improvement in the current centralized way of purchasing goods online, where the information remains as it is entered by the seller while listing the product in Nepal and developing countries context.</em> <strong>Originality/Value: </strong><em>The study has produced a decentralized, reliable, secure, and third-party independent marketplace for buying and selling products for fraud free market.</em> <strong>Paper Type: </strong><em>Research paper</em>
Fernando Henrique Antunes de Araujo, Leonardo H.S. Fernandes, JOSà W. L. SILVA, Kleber E. S. Sobrinho · 5 authors
Abstract This paper has investigated the predictability of the top ten cryptocurrenciesâ price dynamics, ranked by their daily market capitalization and trade volume, via the information theory quantifiers. Our analysis considers the Complexity-entropy causality plane to study the temporal evolution of the price of these cryptocurrencies and their respective locations along this 2D map, bearing in mind after and during the Russia-Ukraine war. Moreover, we apply the permutation entropy and the Jensen-Shannon statistical complexity measure to rank these cryptocurrencies similarly to a complexity hierarchy. Our findings reflect that the Russian-Ukraine war affects the informational efficiency of cryptocurrency dynamics. Specifically, the cryptocurrencies notably showed a decrease in informational inefficiency (USD-coin, Binance-USD, BNB, Dogecoin, and XRP). At the same time, the cryptocurrencies with more expressiveness for the financial market, considering the volume traded and the capitalized market, were strongly impacted, presenting an increase in informational inefficiency (Tether, Cardano, Ethereum, and Bitcoin). It clarifies the potential of cryptocurrencies to mitigate exogenous shocks and their capability to use with portfolio selection, risk diversification and herding behaviour.
Industry 4.0 is the current and developing environment which has led to the evergrowing use of disruptive technology in all areas of life, including finance and investment.Cryptocurrency appeared on the surface of capital markets in 2008, as one of the greatest innovations of our century.The study shows that cryptocurrencies have their own niche in payment systems; they are highly competitive and dependable financial instruments.The growth dynamics of cryptocurrency market capitalization in the world makes Bitcoin the most successful example of the use of virtual currency in the information economy.Our country's economy should follow the path of innovation in finding solutions to a number of technical, economic and legal issues concerning the development of the cryptocurrency market in India through involving the experience of the leading countries.The study also assesses how the financial industry uses Cryptocurrency to enhance the efficiency and wealth of investors as the alternative for the traditional investment avenues.Cryptocurrency has an enormous propensity to improve an investor's risk-yield profile.The paper substantiates opportunities and perspectives for the development of the future of Indian cryptocurrency market.
This research paper explores the relationship between the global economic policy uncertainty index (GEPU) and Ethereum price.By employing the Hodrick-Prescott Filter Decomposition, the price of Ethereum is decomposed into a trend component, which reflects the increasingly wide usage, and the cyclical component, which shows its character as a safe haven asset and a speculative financial asset.By examining the relationship between the GEPU and the cyclical component of Ethereum, I find that GEPU Granger causes cyclical Ethereum, and they have a cointegration relationship.Their error correction models also demonstrate that cyclical Ethereum responds in the short-run to changes in GEPU and deviations from long-run equilibrium.The dynamics make the cyclical Ethereum converge towards their long-run equilibrium relationship.
This study examines dynamic connectedness linkages between precious metals, manufacturing metals, oil, natural gas, and Bitcoin. The Quantile-VAR methodology is utilised to identify causal spillovers from 2015 through 2022, where results demonstrate significantly stronger pairwise connectedness at extreme quantiles, where the gold-silver and copper-oil pairs exhibit the strongest linkages. Additionally, the overall dynamic connectedness is higher at the lowest and highest quantiles, particularly reinforced during inflationary periods. Copper is identified as the strongest generator of spillovers, followed by silver, nickel, and zinc. There are mixed findings when analysing gold and aluminium, whereas oil, natural gas, and Bitcoin are identified as net receivers. This study provides insight into commodities and cryptocurrency marketsâ diversifying and hedging abilities during alternative economic and financial conditions.
Economic systems play pivotal roles in the metaverse. However, we have not yet found an overview that systematically introduces economic systems for the metaverse. Therefore, we review the state-of-the-art solutions, architectures, and systems related to economic systems. When investigating those state-of-the-art studies, we keep two questions in our mind: (1) what is the framework of economic systems in the context of the metaverse, and (2) what activities would economic systems engage in the metaverse? This article aims to disclose insights into the economic systems that work for both the current and the future metaverse. To have a clear overview of the economic-system framework, we mainly discuss the connections among three fundamental elements in the metaverse, i.e., digital creation, digital assets, and the digital trading market. After that, we elaborate on each topic of the proposed economic-system framework. Those topics include incentive mechanisms, monetary systems, digital wallets, decentralized finance (DeFi) activities, and cross-platform interoperability for the metaverse. For each topic, we mainly discuss three questions: a) the rationale of this topic, b) why the metaverse needs this topic, and c) how this topic will evolve in the metaverse. Through this overview, we wish readers can better understand what economic systems the metaverse needs, and the insights behind the economic activities in the metaverse.
The study focuses on identifying the driving forces behind the digital transformation of the economy in the financial sector and the development of the digital financial assets (DFA) market. The subject of the research is the factors of digital transformation and the DFA market. The relevance is due to the transformation of the world economy, associated, among other things, with the active development of the DFA market, the expansion of the possibilities of using distributed ledger technologies (DLT) and blockchain against the background of high growth rates of the cryptoasset market. The aim of the paper is to summarize the main trends in the development of the global cryptoasset market, determine the main factors of investment attractiveness of cryptocurrencies and explore the conditions for the successful implementation of various models of digital currencies of central banks (CBDC). In the course of the work, the method s of systematization and classification of information, multivariate statistical analysis were used. As a result of the study, 5 clusters of cryptocurrencies were identified, depending on the dominance in the market and the dynamics of price changes. The resulting functions can be used to predict the attribution of cryptocurrencies to the corresponding clusters. Among the factors that have a significant impact on the development of CBDC projects in general and with the wholesale model in particular, one can single out âcapitalâ. At the same time, CBDC projects with a retail model are actively and successfully implemented in countries with a high level of technical knowledge and entrepreneurial talent, ahead of the capital factor in their importance. Taking into account the review of global trends, the development of fintech technologies, it was concluded that the processes of digitalization of financial assets are inevitable, the emergence of new forms of digital assets that dictate the need for the advanced development of their legal regulation.
VlÄduÈ Faraonel, Alexandra Raluca Jelea, Mara MaÈcu-Zaharia
This paper aims to find out about the perception Romanian students have concerning cryptocurrencies. Our main focus was on students from faculties of economics, but we have also gathered responses from students enrolled in other faculties, given the fact that this research is an empirical one. The method used in this research is qualitative. We have conducted semi-structured interviews which included the top of mind and Chinese Portrait method techniques. Thus, we have collected information about how students perceive cryptocurrencies (and with what they associate them), the most well-known cryptocurrencies among students, how much students are willing to invest in cryptocurrencies and from where they get their information on this topic. Our results align with results from past research, showing that attitudes concerning cryptocurrencies are in extremes, with some people being optimistic due to the facilities blockchain brings, but with others still being suspicious because of this new phenomenon.
Fatih Ecer, Adem BöyĂŒkaslan, 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 studyâs 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.