The main purpose of this study in determine whether Bitcoin is becoming an alternative investment option compared to other financial instruments in Turkey. To perform analysis for this purpose, we created sample includes Bitcoin, Bist 100 National Index, Bond, Euro and Gold. We calculated daily returns in terms of % for each type of instrument for the period range from 02.02.2012 to 17.12.2018. Methodology -In the study, we tested the stationarity of the series and the causality relationships between the series through the nonlinear unit root and causality tests. Stationarity of the series and causality relations between them are determined with the help of charts. Both in unit root test and in causality test, firstly we obtained test statistics and normalized them by using critical values then transferred them to the charts. In order to decide about when test statistics is higher than critical values null hypothesis is rejected. Findings-Bitcoin, Usd, Gold and Bond are found non-stationary for the whole period. We find out that returns of Euro is more stable than Usd. Bitcoin has been fluctuating during all period except for first months of 2013 while Gold's returns are intensively volatile when politic and economic risks are increasing. This show investors in Turkey still consider Gold as safe port for their investments. Usd currency is volatile for all period because of its increasing demand all over the world. In causality test we observed that there is a causality relation from Bitcoin's returns to Bist 100 returns. This result shows that Bitcoin is becoming an alternative (substitute) investment tool for domestic and foreign investors compared to Borsa Istanbul. There is more causality relation between Bitcoin and Gold than Bitcoin and Bist 100. Conclusion-Based on the findings of this analysis, , it may be accepted that Bitcoin has been becoming an alternative investment/savings tool for the Turkey case. Regulatory institutions should create a required legal framework for the Bitcoin because Bitcoin has a great potential to prevent of tax evasion, the terminate the informal economy and eliminate intermediation costs.
Son yılların önemli araştırma konusu olan kripto paralar içinde en önemlisi olan Bitcoin bir yıl içinde yirmi katın üzerinde değer kazandı ve yatırımcılar açısından güven duyulan bir para birimi haline geldi. Artan güven ile birlikte Bitcoin yatırımcılarının da çoğalmasıyla piyasadaki hacimde gözle görülür bir büyüme meydana geldi. Bu sayede Euro ve Amerikan Doları gibi para birimlerinin 2008 krizinden sonraki güvensiz hale gelmesi Bitcoin’in güven duyulan bir para birimi haline gelmesine sebep oldu. Sadece para birimleri değil menkul kıymet ve emtia gibi yatırım araçlarına da alternatif olan Bitcoin yüzyıllardır bireysel yatırımcıların vazgeçilmez yatırım aracı olan altının konumunu neredeyse alır vaziyete geldi. Söz konusu çalışma ani şekilde yükselişe geçen ve yatırımcılar tarafından hızlı bir şekilde yatırım aracı olarak kabul edilen Bitcoini, asırlardır önemli bir yatırım aracı olarak kabul edilen altına karşı ADF Birim Kök Testleri, Johansen Koentegrasyon Testi, Hata Düzeltme Modeli ve Düzeltilmiş En Küçük Kareler Modeli kullanılarak değerlendirilmektir.
Günlük yaşama çok hızlı bir giriş yapan kripto para birimleri bireyin hayatını çevrelemeye başlamıştır. Muhasebe bilimi açısından konuya bakıldığında incelenmesi gereken finansal açıdan hayati derecede önemli yeni durumlar ortaya çıkmıştır. Bunlara kripto para birimlerinin muhasebeleştirilmesi, meydana gelen kazancın vergilendirilmesi, işletmelerin bünyelerinde bulunan kripto paraların ve bu paralarla yapılan işlemlerin denetim açısından durumu sayılabilir. Bu çalışmada kripto para birimlerinin muhasebe açısından incelenerek muhasebeleştirilmesi, vergiye konu edilmesi ve denetim açısından durumunun irdelenmesi ve çeşitli önerilerde bulunulması amaçlanmaktadır.
Para mal ve hizmet aliminda kullanilan bir olgudur, sanal para ise herhangi bir ulkeye bagli olmayan miktari belli olan herkesin gorebildigi seffaf bir dijital olgudur. Kurucusu Satoshi Nakamato tarafindan 2008 yilinin sonunda sekiz sayfalik pdf dosyasiyla hayatimiza giren bitcoin (BTC) herhangi bir ulkeye ve merkez bankasina bagli olmayan kisiden kisiye (p2p) veri aktarimi ile birbirine bagli olan acik kaynak kodlu kriptolu bir sanal paradir. Blokchain dijital bir noter gibi calisan uzerinde kisiden kisiye veri aktarimi olan herkesin yaptigi islemleri kayit altina alabilen seffaf bir muhasebe defteridir, bu defterde ki tum kisiler birbirine bir zincir ile bagli yaptiklari alim satimlar sistemdeki kisilerin onayina bagli bu alim satimlarda onaylayan kisilerde paylarina dusen hediyeleri almaktadirlar sistem onayi bir nevi samanlikta igne aramaya benzedigi icin bu kisilere madenci denilmektedir. Bitcoin hakkinda diger bir onemli konu ise blokchain teknolojisinin ilerde saglikta, maliyede ve e-secimde kullanilacagina kesin gozuyle bakiliyor.
Dijital para birimleri son yıllarda etkinliğini artırarak uluslararası piyasalarda önemli oranda talep görmeye başlamıştır. Dijital para birimleri arasında işlem hacmi ve getiri oranları dikkate alındığında, Bitcoin ön plana çıkmaktadır. Çalışmada, Bitcoin fiyatları ile döviz kurları arasındaki ilişki incelenmektedir. Bu doğrultuda kurulan model kapsamında, 24 Kasım 2013 - 04 Mart 2018 dönemlerini kapsayan haftalık veriler ile yapısal kırılmalı testler kullanılarak döviz kurları ile Bitcoin fiyatları arasındaki ilişki irdelenmiştir. Analizlerde kullanılan verilerin I (1) düzeyinde durağan olduğu tespit edilmiş olup yapısal kırılmaya izin veren Maki Eşbütünleşme testi sonuçlarına göre değişkenler arasında yapısal kırılmalarla birlikte uzun dönemli bir ilişki olduğu sonucuna ulaşılmıştır. Hacker-Hatemi-J Bootstrap Nedensellik testi sonuçlarında ise dolar kurundan Bitcoin fiyatlarına doğru %1 anlamlılık düzeyinde nedensellik ilişkisi tespit edilmiştir.
Para kavramı ihtiyaçlarave teknolojideki gelişmelere bağlı olarak tarih boyunca değişim göstermiştir. Mallar, altın, gümüş, banknotlar, elektronik para hepsiparanın rolünü oynamıştır. Blockchain teknolojisinin doğuşu, Bitcoin adıverilen eşler arası ödeme sistemine yenilikçi, merkezi olmayan bir sistemoluşturmuştur. Kripto para sistemi internet ağı üzerinden doğrudan ikitaraf arasında herhangi bir aracı kurum olmaksızın gerçekleştirilmektedir. Busistemde herhangi bir devlet otoritesinin kontrol ve sorumluluğu dabulunmamaktadır. Devletin kontrol imkanı olmaması bazı riskleri de beraberindegetirmektedir. Bu çalışmada farklı yaklaşımlar arasında karşılaştırmalardabulunarak İslam hukuku açısından konuya temas etmeye gayret gösterilecektir.Kripto para ve Bitcoin, İslam hukuku hükümleri çerçevesinde değerlendirilerek,bunların para fonksiyonunu sağlama durumları incelenmekte ve ekonomik hayatagetireceği avantaj ve dezavantajlar belirlenmektedir. Kripto parayla ilgilimevcut risklerin ise giderilmesi için yasal düzenlemelere ihtiyaçbulunmaktadır.
Roberto B. Corcino, Karl Patrick Casas, Allan Roy Elnar
In this paper, a mathematical model is constructed that would capture the pattern of the MSD of fluctuations of Bitcoin unit prices over time in daily basis by applying the method of White Noise Analysis. The raw data of 2805 ordered points (t,p) are used in the study, which are taken from coindesk.com, where p is the Bitcoin unit price at given time t.
У статті на основі аналізу причин стрімкого падіння цінності криптовалют у 2018 р. і особливостей 17 альткоїнів з найбільшою ринковою капіталізацією зроблено висновки про вектори розвитку криптовалют і перспективи цього феномену. Виявлено вектори розвитку криптовалют: 1) валюти платформ для створення і функціонування децентралізованих додатків (Ethereum та альтернативні платформи: Eos (позиціонується як швидша, простіша, дешевша); Cardano (для фінансових додатків, що використовуються у щоденній діяльності); Neo (валюта платформи, дружньої до регуляторів (зокрема, китайських); Ehereum Classic – більш децентралізована, з більш строгою незворотністю транзакцій, ніж у Ethereum); 2) платформи для більш ефективних транскордонних платежів (Ripple та більш децентралізована альтернатива – Stellar); 3) вирішення технічних проблем біткоїна (Litecoin – більш зручна для дрібних трансакцій, Bitcoin Cash – альтернативне вирішення проблеми масштабування трансакцій); 4) полегшення торгівлі криптовалютами і вирішення проблеми їхньої волатильності – Tether; 5) внутрішні валюти криптовалютних бірж (Binance Coin); 6) збільшення анонімності трансакцій: Monero, Dash; 7) забезпечення транзакцій в Інтернеті Речей – IOTA; 8) універсальна валюта для віртуальних розваг – TRON. Обґрунтовано гіпотезу, що, не впоравшись з амбітною роллю альтернативи суверенним грошам ієрархічної природи, криптовалюти частково зійдуть до ролі віртуальних валют для локальних віртуальних просторів, а частково перенесуть частину своїх властивостей у традиційні платіжні системи, аби полегшити, скажімо, транскордонні транзакції. Загалом, процес поширення криптовалют синхронізується з процесом поширення інформаційно-мережевої економіки.
Перспективною для усвідомлення сутності криптовалюти в контексті кримінально-правового регулювання вбачається систематизація її ознак і встановлення їх змісту. Видається, що найбільш вдалою систематизацією ознак криптовалюти буде традиційна для кримінально-правового регулювання система ознак предмета злочину: фізична, економічна, юридична. Фізична ознака характеризує технічні аспекти функціонування криптовалюти. Економічну ознаку визначає ціна, яку за неї можуть заплатити зацікавлені особи. Юридична ознака встановлюється на підставі послідовного аналізу передбачених чинним законодавством видів об’єктів цивільних прав. Отже, у контексті кримінально-правового регулювання криптовалюта представляє собою дані в електронному вигляді, що мають ціну та є предметом реалізації права на інформацію.
Kripto para olarak da adlandırılan dijital para fiyatlarındaki değişimler son yıllarda yatırımcıların oldukça ilgisini çekmiştir. Hızlı fiyat değişimlerinden getiri elde etmek isteyen yatırımcılar yeni bir varlık olan dijital paralara yönelmişlerdir. Bu doğrultuda, dijital paraların geleneksel menkul kıymetlerine alternatif olma ihtimalleri tartışılmaya başlanmıştır. Çalışmada, Bitcoin fiyatları ile Borsa İstanbul arasındaki eşbütünleşme ve nedensellik ilişkisini tespit etmek amaçlanmıştır. Bu kapsamda, Engle-Granger ve Gregory-Hansen eşbütünleşme testleri ile Toda-Yamamoto ve Hacker-Hatemi-J nedensellik testlerinden faydalanılmıştır. Bulgular, her iki eşbütünleşme testine göre Bitcoin fiyatları ile Borsa İstanbul endeks değeri arasında orta ve uzun vadede bir eşbütünleşme ilişkisinin olmadığını; nedensellik testlerinden sadece Toda-Yamamoto nedensellik testine göre Borsa İstanbul’dan Bitcoin fiyatlarına doğru tek yönlü nedensellik ilişkisi olduğunu göstermiştir.
Rachid Guerraoui, Petr Kuznetsov, Matteo Monti, Matej Pavlovic · 5 authors
Many blockchain-based protocols, such as Bitcoin, implement a decentralized asset transfer (or exchange) system. As clearly stated in the original paper by Nakamoto, the crux of this problem lies in prohibiting any participant from engaging in double-spending. There seems to be a common belief that consensus is necessary for solving the double-spending problem. Indeed, whether it is for a permissionless or a permissioned environment, the typical solution uses consensus to build a totally ordered ledger of submitted transfers. In this paper we show that this common belief is false: consensus is not needed to implement of a decentralized asset transfer system. We do so by introducing AT2 (Asynchronous Trustworthy Transfers), a class of consensusless algorithms. To show formally that consensus is unnecessary for asset transfers, we consider this problem first in the shared-memory context. We introduce AT2$_{SM}$, a wait-free algorithm that asynchronously implements asset transfer in the read-write shared-memory model. In other words, we show that the consensus number of an asset-transfer object is one. In the message passing model with Byzantine faults, we introduce a generic asynchronous algorithm called AT2$_{MP}$ and discuss two instantiations of this solution. First, AT2$_{D}$ ensures deterministic guarantees and consequently targets a small scale deployment (tens to hundreds of nodes), typically for a permissioned environment. Second, AT2$_{P}$ provides probabilistic guarantees and scales well to a very large system size (tens of thousands of nodes), ensuring logarithmic latency and communication complexity. Instead of consensus, we construct AT2$_{D}$ and AT2$_{P}$ on top of a broadcast primitive with causal ordering guarantees offering deterministic and probabilistic properties, respectively.
This article demonstrates the possibility of constructing indicators of critical and crash phenomena in the volatile market of cryptocurrency. For this purpose, the methods of the theory of complex networks have been used. The possibility of constructing dynamic measures of network complexity behaving in a proper way during actual pre-crash periods has been shown. This fact is used to build predictors of crashes and critical events phenomena on the examples of all the patterns recorded in the time series of the key cryptocurrency Bitcoin, the effectiveness of the proposed indicators-precursors of these falls has been identified.
Cryptocurrencies have gained tremendous popularity over the past few years. The purpose of this study is to try to understand the factors that are driving cryptocurrency-related trading activities. Focusing on the well-established cryptocurrency called Bitcoin, we find that online search popularity and the volume of trade in unrelated stock markets positively and negatively, respectively, influence Bitcoin trading volume. We also find no statistical evidence that the underlying sentiment behind relevant financial news influence Bitcoin trading volume. We believe these results might be of great value to investors interested in cryptocurrencies and might instigate further research on this topic.
In this paper, reinforcement learning is applied to the problem of optimizing market making. A multi-agent reinforcement learning framework is used to optimally place limit orders that lead to successful trades. The framework consists of two agents. The macro-agent optimizes on making the decision to buy, sell, or hold an asset. The micro-agent optimizes on placing limit orders within the limit order book. For the context of this paper, the proposed framework is applied and studied on the Bitcoin cryptocurrency market. The goal of this paper is to show that reinforcement learning is a viable strategy that can be applied to complex problems (with complex environments) such as market making.
The subject of this paper is to analyse utilization of cryptocurrencies in international business. The objectives of the research are to provide the scientific and professional public, researchers and practitioners with an overview of current research on blockchain technology in the economy and to determine the impact of the wider use of cryptocurrencies in international business and their impact on the future of financial markets. The research was carried out by using the method of description, literature analysis and research conducted. The selected examples present the possibility for earning, buying and storing cryptocurrencies, paying with crypto-money and investing in them. The research will offer an answer to the research question “What are the advantages and disadvantages of using cryptocurrencies in international payments and what are the security measures of using cryptocurrencies in the future?” In the answer, this paper will present the direction in which the use of crypts will develop in the future. The contribution of the paper is reflected in the presentation of the scope and restrictions on the use of cryptocurrencies in international business, banking and financial markets. Results have shown that blockchain technology has a bright perspective, even though it would not be known today if bitcoin had not gained in popularity. The conclusions suggest that, as long as the transaction costs are lower than the costs of payment transactions, the rational behaviour of legal and natural persons requires encouraging the use of cryptocurrencies in order to reduce the costs of transactions and to overcome the existence of an intermediary.
Resource-constrained devices are unable to maintain a full copy of the Bitcoin Blockchain in memory. This paper proposes a bidirectional payment channel framework for IoT devices. This framework utilizes Bitcoin Lightning-Network-like payment channels with low processing and storage requirements. This protocol enables IoT devices to open and maintain payment channels with traditional Bitcoin nodes without a view of the blockchain. Unlike existing solutions, it does not require a trusted third party to interact with the blockchain nor does it burden the peer-to-peer network in the way SPV clients do. The contribution of this paper includes a secure and crypto-economically fair protocol for bidirectional Bitcoin payment channels. In addition, we demonstrate the security and fairness of the protocol by formulating it as a game in which the equilibrium is reached when all players follow the protocol.
Marco Conoscenti, Antonio Vetrò, Juan Carlos De Martin, Federico Spini · 6 authors
The Lightning Network (LN) is one of the most promising off-chain scaling solutions for Bitcoin, as it enables off-chain payments which are not subject to the well-known blockchain scalability limit. In this work, we introduce CLoTH, a simulator for HTLC payment networks, of which LN is the best working example. It simulates input-defined payments on an input-defined HTLC network and produces performance measures in terms of payment-related statistics, such as time to complete payments and probability of payment failure. CLoTH helps to predict issues that might arise in the development of an HTLC payment network, and to estimate the effects of an optimisation before deploying it. In upcoming works we'll publish the results of CLoTH simulations.
Purpose - This study conducts an analysis to reveal the interaction between Bitcoin and Exchange Rates to find out whether Bitcoin is becoming a substitution for the exchange rates.Methodology - To investigate the mutually interaction between the exchange rates and the Bitcoin, the interaction (relationship) between daily closing price of both exchange rates and Bitcoin was analyzed through the Var model. Thus, it was tried to show the sensitivity of the values of Bitcoin to the changes occured in the exchange rates.Findings - Based on Variance Decomposition analysis, BITCOIN and Euro can be considered as largely external variables and their prices are not significantly affected by USD. An interesting result in this study is that the USD exchange rate was found to be significantly sensitive to the Euro.Conclusion - Findings obtained from analysis show that Bitcoin and Excange Rates have not become an alternative tools for each other yet.
This is the first paper that estimates the price determinants of BitCoin in a Generalised Autoregressive Conditional Heteroscedasticity framework using high frequency data. Derived from a theoretical model, we estimate BitCoin transaction demand and speculative demand equations in a GARCH framework using hourly data for the period 2013-2018. In line with the theoretical model, our empirical results confirm that both the BitCoin transaction demand and speculative demand have a statistically significant impact on the BitCoin price formation. The BitCoin price responds negatively to the BitCoin velocity, whereas positive shocks to the BitCoin stock, interest rate and the size of the BitCoin economy exercise an upward pressure on the BitCoin price.
Bitcoin was the first digital currency to rely on a decentralized peer-to-peer network instead of a trusted third party. This was achieved through Bitcoin’s revolutionary underlying technology based on cryptographic proof: the blockchain. After Bitcoin’s emergence, many other so called cryptocurrencies entered the market and we have seen enormous price increases that romised large returns for early users. The return characteristics of cryptocurrencies have been studied by various scholars and some have even declared cryptocurrencies to be an asset class instead of a digital currency. Due to the fast changes in the cryptocurrency market and the increased importance of other cryptocurrencies than Bitcoin, we believe that research focusing on the financial performance of cryptocurrencies should be renewed on a regular basis. Therefore, with this work we aim to shed light on the return characteristics of cryptocurrencies in relation to traditional asset classes and on the potential of cryptocurrencies to improve portfolio diversification. In addition, we investigate the cryptocurrency market, describe selected cryptocurrencies in more detail and provide an overview of potential technological risks arising with the use of cryptocurrencies. Our results indicate that cryptocurrencies provide large return potentials with high levels of volatility but compared to traditional asset classes provide a higher level of return per level of risk. We also find that selected cryptocurrencies can improve diversification in a cryptocurrency portfolio, as well as in a portfolio of international equity and private equity investments. Keywords: Alternative Asset Classes, Cryptocurrency, Portfolio Diversification, Risk-Reward Profile und Cryptocurrency Risks
The article presents the analysis and evaluation of the essence of bitcoin (and other cryptocurrencies) from the perspective of its (their) adaptability to the Muslim concept of money. From an economic point of view in the so-called Western culture, all the classical functions of money cannot be fully attributed to bitcoin. Although it performs the function of an exchange medium and the means of payment, it does not fulfil the role of a value storing instrument and thus proves to be a defective measure of value. In the Islamic world, the perception of bitcoin as money is a more complex problem because its economic presentation overlaps with religious issues. Such relationship results in a situation when the answer to the question: can bitcoin be approached as money, is formulated on the basis of a subjective interpretation of the Sharia law, which is also ambiguous.
Trust issue gradually becomes more of a concern in the 21st century business environment. Recent research sheds light on the erosion of trust to brands on a global basis. Traditionally, trusted third parties take place to ensure the trust needed for business transactions to take place. Digitization, advances in peer-to-peer networks and cryptographic technologies have advanced to such a point that exchange of currency, as in the case of Bitcoin, and even value as in the case of property rights, securities, ownership etc. can be done over Internet with Blockchain technology serving as a trust layer baked into the protocol. Blockchain technology serves as the missing trust layer in the evolution of Internet. This paper explores implications of Blockchain technology on marketing discipline from various aspects. The paper pinpoints the key strategies marketers need to adopt to survive in the rapidly evolving business landscape. Finally, conclusions are drawn regarding future direction of marketing as affected by those technological advances.
Muhammad Salek Ali, Massimo Vecchio, Miguel Pincheira, Koustabh Dolui · 6 authors
The blockchain technology has revolutionized the digital currency space with the pioneering cryptocurrency platform named Bitcoin. From an abstract perspective, a blockchain is a distributed ledger capable of maintaining an immutable log of transactions happening in a network. In recent years, this technology has attracted significant scientific interest in research areas beyond the financial sector, one of them being the Internet of Things (IoT). In this context, the blockchain is seen as the missing link toward building a truly decentralized, trustless, and secure environment for the IoT and, in this survey, we aim to shape a coherent and comprehensive picture of the current state-of-the-art efforts in this direction. We start with fundamental working principles of blockchains and how blockchain-based systems achieve the characteristics of decentralization, security, and auditability. From there, we build our narrative on the challenges posed by the current centralized IoT models, followed by recent advances made both in industry and research to solve these challenges and effectively use blockchains to provide a decentralized, secure medium for the IoT.