Cryptocurrency, the most controversial and simultaneously the most interesting asset, has attracted many investors and speculators in recent years. The visibly significant market capitalization of cryptos also motivates modern financial instruments such as futures and options. Those will depend on the dynamics, volatility, or even the jumps of cryptos. We provide a comprehensive investigation of the risk dynamics of the Bitcoin Market from a realized volatility perspective. The Bitcoin market is extremely risky in the sense of volatility, entangled jumps, and extensive consecutive jumps, which reflect the major incidents worldwide. Empirical study shows that the lagged realized variance increases the future realized variance, while the jumps, especially positive ones, significantly reduce future realized variance. The out-of-sample forecasting model reveals that, in terms of forecasting accuracy and utility gain, investors interested in the long-term realized variance benefit from explicitly modelling the jumps and signed estimators, which is unnecessary for the short-term realized variance forecast.
Bitcoin, an open-source decentralized peer-to-peer payment system, has made an unprecedented rise to notoriety in the last decade. In 2018, Bitcoin reported its worst year in history with depreciation of more than 70% from its year opening price. Consequently, the narrative of a bubble that surrounded Bitcoin was amplified by this news. The purpose of this paper is to analyze the presence of a bubble within Bitcoin by comparing its price volatility and the psychological factors that influence its price formation to that of two historic bubbles, the Dotcom Bubble and the Tulip Mania.
This paper studies 60 months of recent returns to examine relationships between bitcoin and 16 exchange- traded funds of currencies, bonds, stocks, commodities, and alternative assets. Bitcoin provides much higher returns, positive skewness, volatility and extreme returns, than all the other assets. Only stocks offer a better risk-return tradeoff than bitcoin. Bitcoin returns have very weak positive correlations with stocks, commodities, and alternatives. Only two funds of stocks and commodities have significant explanatory power of about 3% each for bitcoin returns. The full model of all the 16 funds explains only 15.09% of bitcoin returns. A partial model, with the six funds that are significant in the full model, explains 12.78% of bitcoin returns; 3 stock funds and 1 commodity fund have significant coefficients in this model. These findings indicate that bitcoin is a unique asset which is only weakly related to stocks and commodities. The results also show that small allocations to bitcoin improve the risk-return tradeoffs of stock and bond portfolios.
Para ilk baslarda madeni ve kagit olarak hizmet ve mal karsiligi kullanilan bir arac olmakta gunumuzde ise eski zamanlara oranla artik fiziksel bir yapidan cikip kredi kartlari ve banka hesaplari ile birlikte soyutlasmaktadir. Yakin zamanda paranin evrimi farkli bir boyuta dogru yol alip kripto para cesidini ortaya cikarmistir ve bunlardan en yaygin ve degerlisi bitcoindir. Bitcoin, bir kripto para ve odeme sistemidir. 2008 yilinda Bitcoin: Kisiden Kisiye Elektronik Para Sistemi adiyla yayinlanan belge, kisiden kisiye (peer-to-peer) deyimi ile merkezsiz bir sistemi isaret edip, aracilari ortadan kaldirmaktan bahsediyor ve blockchain teknolojisi ile bunun gerceklestirilebilecegini savunuyor. 1 Bitcoin bu calismanin hazirlandigi donem araliginda 10.000 Dolar / 55.000 TL civarlarinda seyretmektedir. Ancak bu calismanin amaci yatirim tavsiyesinden ziyade bitcoin ve onun arkasindaki blockchain teknolojinin temelini anlatmaktir. Calismada bitcoin uzerine literaturde yer alan arastirmalara da deginilmistir.
Bitcoin replicates many of the formal aspects of real estate transactions. Bitcoin transactions have features that closely resemble grantor names, grantee names, legal descriptions, and signatures found in real property deeds. While these “Bitcoin deeds” may be interesting, they are not profound. Bitcoin goes beyond creating simple digital deeds, however, and replicates important institutional aspects of real estate transactions, in particular recordation and title assurance. Deeds to real property are recorded in a central repository (e.g., the public records office), which the parties (and the public) can search to determine title. When one grantor executes more than one deed covering the same property, recordation acts (race, notice, and race-notice) determine which grantee wins. The Bitcoin blockchain replicates the public records office, giving anyone with a computer the ability to see any Bitcoin transaction. Bitcoin mining replicates the recording of deeds, a process by which formally valid transactions between two parties become essentially a public record. When one grantor executes more than one transaction covering the same Bitcoin, a miner determines which grantee wins simply by moving one transaction to the blockchain before the others. Remarkably, Bitcoin replicates these aspects of real estate transfers without any governing authority to coordinate or supervise activities. It has no central database for the blockchain. Instead, users across the globe maintain the blockchain in identical form. Bitcoin has no recorder of deeds to time-stamp and process transactions. Instead, it relies on dispersed and competitive miners to, in effect, time-stamp transactions and add them to the blockchain. Ultimately, this Article will show that Bitcoin succeeds because it leads its community of users to a consensus about the blockchain. Thus, this Article will conclude that Bitcoin replicates elemental pieces of property law, but it does so wholly outside of traditional legal structures. Ownership is based on computer protocols, computer records, community expectations, and nothing more. Bitcoin functions as law, even though it operates outside of the law.
This paper attempts to find out if the view of the public coincides with the opinion of the experts on the Bitcoin's subject and to determine if is information can be implemented in order to establish a use of Bitcoin in our everyday lives. During the first stage of this research, methods and rules of analysis such as descriptive statistics and tables and charts were used. Firstly, a questionnaire was used and secondly, the answers were gathered and classified according to the participants' choices. During the second stage, the data was collected with the use of random sampling, while various techniques, such as simple and multiple regressions were utilised for analysing the results. The conclusion is that the public perceives Bitcoin differently than the experts do. Individuals believe that Bitcoin is mainly a means of transactions/payments, contrary to the experts' opinion, which is that it is foremost an investment asset.
Cryptocurrencies is a part of the fast growing fintech market. Bitcoin is the first\ncryptocurrency, but also the currency with the largest market share. Bitcoin was created in\n2009, by Satoshi Nakamoto, and have in the years since its release faced very volatile\nexchange rates. The purpose of Bitcoin is to create a currency that allows payments to be sent\nfrom one party to another without going through a financial institution. The volatile exchange\nrate, and Bitcoins attributes has raised the question of how to define Bitcoin. This thesis\nanswers the research question: Bitcoin – a Currency or an Asset?\nThe thesis defines what is fiat currency, monetary theory and monetary value, in addition to\nthe asset classes capital assets, consumable/transferable asset and store of value assets.\nBitcoin’s attributes are discussed in light of these definitions. Also included in the background\nare the governmental views on Bitcoin. Here the thesis focuses on how cryptocurrency is\nhandled by legislators. In Japan cryptocurrencies are deemed legal tender, in the E.U. it is\ndefined as currency, in the U.S. Bitcoin is defined as a commodity, while other\ncryptocurrencies is defined as securities, in China government has issued a ban on all\ncryptocurrency. The empirical part of this thesis is made up by time series regressions and\nrolling window regression using Bitcoin exchange rates, price of gold, OFRS financial stress\nindex, S&P 500 and the federal funds rate as parameters.\nBitcoin is designed to function as a currency, but lack of acceptance in the economy causes\nproblems for the users. The volatile exchange rate also causes problems as it makes Bitcoin\nworthless as a measurement of value, and also difficult to use Bitcoin for consumption.\nFindings from the time series regressions and the rolling window regressions indicate that the\nBitcoin’s exchange rate follows the asset market. When the S&P 500 increases and the OFR\nfinancial stress index is negative, indicating low stress in the financial market, the Bitcoin\nexchange rate increases. The exchange rate is also positively correlated with the price of gold.\nThe empirical evidence, together with the theoretical framework leads to the conclusion that\nBitcoin is an asset.
Blockchain technology had become evident since 2008 when Santoshi Nakamoto aimed to serve blockchain as a bond ledger of the cryptocurrency bitcoin. It should never be compared to any existing technologies like the internet. Blockchain is pleased with the fact that it provides high satisfaction and a trust bond to its users. There are significant implementations of blockchain technology across various sectors of a country which includes the agricultural venture, education venture, and supply chain management systems. Blockchain technology can be useful in countries like India, where the agricultural sector perturb about one-sixth of the total GDP of the country and also about half of the employees working in that country. So we will discuss several implementations of blockchain, which are spoonful in transforming a nation.
Cryptocurrency is a digital asset that has seen a large amount of attention within the past five years. Its origin is intriguing to some based upon its newness, yet it has invoked mysticism and skepticism in others. Bitcoin is the most recognizable currency, receiving heavy media attention. There are several other cryptocurrencies as well, less in the spotlight. Most appealing to cryptocurrency could include lack of government oversight, and increased privacy available to the consumer(s) (Bunjaku, Gjorgieva-Trajkovska, and Miteva-Kacarski, 2017, p. 37). Additional advantages include the simplicity in the start-up process, the ease of transferability, and the opportunity to have a seamless process in investing and/or exchanging monies. Cryptocurrency creates the ability to invest for some people groups that could never invest before and diversify investment portfolios (Theron and van Vuure, 2018, p. 2). While the newness of cryptocurrency certainly has been appealing for some, it also has been perceived oppositional by others. There has been concerns identified with regard to the level of trust required, an obvious and significant drawback if valid. Another identified disadvantage to cryptocurrency is its low amount of oversight and liquidity hurt for investing future. The ability for cryptocurrency to be used for illegal and/or evil activity is an ethical drawback (Nian and Chuen, 2015, p. 15). Lastly, the uncertainty of the future is a significant drawback. The future of cryptocurrency requires much economic forecasting. The new changes that cryptocurrency will bring to traditional economic institutes is an area which cryptocurrency needs to explored more. Lastly, is cryptocurrency a fad or an economic bubble.
Robert Gutmann, Jonathan Knehr, Phillip Rapoport, Ross L. Stevens
Using live trade execution data from an institutional money manager, we measure the real-world costs and challenges a trader faces when demanding significant liquidity of Bitcoin. We provide a novel characterization of the market to purchase digital assets across exchanges and over-the-counter (“OTC”) dealers. We find that most displayed digital asset liquidity on exchanges is not readily accessible to institutional investors. However, by purchasing digital assets OTC from regulated counterparties, institutional investors can achieve comparable or better execution quality while fulfilling their fiduciary obligations.
Resumo Este artigo analisa a classificação jurídica das criptomoedas, a fim de, a partir dessa classificação, definir como se deve dar a incidência tributária em operações efetuadas com tais moedas. Para tanto, parte-se da análise do conceito de moeda no ordenamento jurídico brasileiro, com o intuito de definir se é viável classificar as moedas virtuais como moeda. No sentido de auxiliar nessa classificação, é efetuada uma breve análise do tratamento dado pelo Direito Comparado à matéria, em especial dos regramentos europeus. O estudo da experiência europeia é útil, na medida em que o Tribunal de Justiça Europeu já teve a oportunidade de decidir, no caso C-264/14 - Hedqvist, sobre a classificação jurídica das bitcoin, definindo se há incidência de Imposto sobre o Valor Acrescentado (IVA) em operações de compra e venda de bitcoin. Com base na experiência europeia e no conceito jurídico brasileiro de moeda, conclui-se que é possível considerar, para fins de incidência tributária, que operações financeiras com criptomoedas são semelhantes às operações com moeda estrangeira. A análise é feita tendo como pressuposto a necessidade de classificação de bitcoin e congêneres para o direito tributário, não tendo por objetivo estudar os impactos regulatórios que possam se originar a partir desta classificação.
Cryptocurrencies, like Bitcoin, present challenges to plaintiffs seeking to recover these digital assets. No third-party intermediaries are involved in cryptocurrency transactions, and there is no controlling authority that can revoke or avoid a transaction once completed. The possessor of a cryptocurrency's private key-its password-has total and exclusive control over the account's assets. These digital assets cross jurisdictional boundaries without impediment. The features of cryptocurrencies make it easy for defendants to judgment-proof themselves and make these assets difficult to recover after a court has entered judgment. This comment explains cryptocurrency features relevant to asset recovery, explores pre-and postjudgment procedures as applied to cryptocurrencies, and suggests ways to mitigate the risks of this potentially difficult-to-recover asset.
2008 yılında yayınlanan "Bitcoin: A Peer-to-Peer Electronic Cash System" adlı makale sayesinde bilgi sahibi olduğumuz Bitcoin, bilimsel litaratüre yeni terimler kazandırarak popülerliğini arttırmaktadır. Alternatif sanal para olarak geliştirilen Ethereum, merkezi bir sunucu veya bir kontrol noktaya ihtiyaç duymadan, karşılıklı uçlar arası anonim ve ucuz şekilde varlık transferine olanak sağlayan bir sistemdir. Blokzincir yapısının en yaygın kullanımı olan Bitcoin ve altcoinlerdir. Kripto paralar madencilik olarak adlandırılan ve zorlu bir algoritmanın çözümü ile gerçekleşmektedir. Sistemde yer alan herhangi bir madenci bu çözümü elde etmek için elinde bulunan ekran kartı ve işlemci gücünü kullanmaktadır. Bu çalışmada GPU'ların barındırdığı işlemcilerin, kayan noktalı işlem hesaplamalarında daha verimli olmaları sebebiyle Ethereum madenciliğinde kullanılan çeşitli ekran kartlarının performansları 4 kademeli bir iyileştirme paketi ile artırılarak karşılaştırılmıştır. Önerilen iyileştirme metotları için kullanılan ekran kartlarının model ve bellek miktarları şu şekildedir: 4 GB AMD R9 290, 4 GB AMD R9 380, 8 GB AMD R9 390, 4 GB AMD RX 560, 4 GB AMD RX 470, 4 GB AMD RX 480, 4 GB AMD RX 570, 4 GB AMD RX 580, 6 GB NVIDIA GTX1060, 8 GB NVIDIA GTX1070, 8 GB NVIDIA GTX1080. Bu çalışmanın en önemli amacı, Ethereum madenciliğine özgü Ethash özet algoritmasında iyileştirme yöntemleri uygulamaktır. Bu amaçla, AMD ve NVIDIA yonga seti grafik kartlarının daha düşük güç tüketimi ile daha hızlı algoritmalar çözmelerini sağlamak için iyileştirmeler yapılmıştır. Grafik kartları fabrika ayarlarıyla çalıştırıldığında, hiçbiri geçerli döviz kurlarından dolayı fayda getiremeyecek durumdadır. Algoritmanın hızını arttırmanın yanı sıra güç tüketimini azaltmak kar bölgesine geçiş için önemli bir faktör olmuştur. Yapılan çalışmalar sonucunda elde edilen değerlere bakıldığında yaklaşık % 30 performans artışı görülmüştür. Ayrıca iyileştirme paketi ile ekran kartlarının tükettiği elektrik enerjisi yüzde 20 ile yüzde 30 arası azaltılmıştır. Anahtar Kelimeler: Ethereum, Blokzincir, Kripto para madenciliği, GPU madenciliği
Open access
Blockchain Technology Applications and Security
Currency Recognition and Detection
Advanced Steganography and Watermarking Techniques
Given Bitcoin’s apparent lack of non-monetary uses, Luther (2018) argues that its emergence as a medium of exchange invalidates the regression theorem, or at least severely limits its relevance to identifying which commodities could emerge as media of exchange in the absence of State intervention. However, this view misinterprets both the regression theorem itself and the problem it was developed to address. The goal of the regression theorem was not to identify which commodities could become monies, but to provide a subjectivist explanation of the purchasing power of money. To do this, it requires only that some individuals valued the good in question before its use as a medium of exchange, not that it had some objective pre-monetary use.
Bitcoin is a top-ranked cryptocurrency that has experienced huge growth and survived numerous attacks. The protocols making up Bitcoin must therefore accommodate the growth of the network and ensure security. However, Bitcoin’s transaction dissemination protocol has mostly evaded optimization. This protocol is based on flooding and though it is secure and fault-tolerant, it is also highly inefficient. Specifically, our measurements indicate that 43% of the traffic generated by transaction dissemination in the Bitcoin network is redundant. In this paper we introduce a new transaction dissemination protocol called Erlay. Erlay is a hybrid protocol that combines limited flooding with intermittent reconciliation. We evaluated Erlay in simulation and by implementing and deploying it at scale. Compared to Bitcoin’s current protocols, Erlay reduces the bandwidth used to announce transactions by 84% without significantly affecting privacy or propagation speed. In addition, Erlay retains the existing Bitcoin security guarantees and is more scalable relative to the number of nodes in the network and their connectivity. Erlay is currently being investigated by the Bitcoin community for future use with the Bitcoin protocol.