The COVID-19 pandemic has disrupted the value chains for all major business sectors, with a great impact on the way we interact, socialize, transact, and trust the systems that we use on a daily basis. The magnitude of this major health crisis imposed a new level of digitalization, to which everyone needed to adapt, with great costs in terms of social, psychological, political, and economic transformation. In order to adapt in a new digital environment, imposed by the pandemic, we witnessed the adoption of decentralized ecosystems and technologies. One of the technologies that stood as foundation for this decentralization movement is blockchain. The first adaptations for blockchain technology happened within the financial services, with the introduction of the financial digital assets or crypto assets. This created the base for concepts like decentralized finance (DeFi), Web 3.0, and the metaverse. This chapter will assess the frontier of financial digital assets, which has emerged and developed the perfect infrastructure for scalability, efficiency, and transparency.
In this paper, we investigate the relationship between the RavenPack news-based index associated with coronavirus outbreak (Panic, Sentiment, Infodemic, and Media Coverage) and returns of two commodities—Bitcoin and gold. We utilized the novel quantile-on-quantile approach to uncover the dependence between the news-based index associated with coronavirus outbreak and Bitcoin and gold returns. Our results reveal that the daily levels of positive and negative shocks in indices induced by pandemic news asymmetrically affect the Bearish and Bullish on Bitcoin and gold, and fear sentiment induced by coronavirus-related news plays a major role in driving the values of Bitcoin and gold more than other indices. We find that both commodities, Bitcoin and gold, can serve as a hedge against pandemic-related news. In general, the COVID-19 pandemic-related news encourages people to invest in gold and Bitcoin.
There have been increasing concerns regarding the cryptocurrency market for several reasons, regarding its decentralized system, and impact on the current financial market. Thus, the introduction of a regulated cryptocurrency market has sparked the public’s interest. This research study aimed to evaluate Indian respondents’ knowledge of cryptocurrencies and their receptivity (on the basis of several factors) towards the introduction of a regulated cryptocurrency market in India by conducting an online survey using a mixed-method research approach. Among the eight different factors examined, the study found the level of liquidity to be the highest-rated factor amongst respondents in influencing their receptivity. This finding suggests that the Indian public prefers a fast-flowing and smooth trading market, like the cryptocurrency market. Another top-rated factor was the level of security, possibly due to the increasing concern of cyberattacks in the financial markets.
 Conversely, anonymous usage, inflation risk, and operation cost were the least influential, highlighting the Indian public’s unique characteristics. Data revealed that respondents who were finance professionals and had IT experience were generally more receptive to the idea of a regulated cryptocurrency market in India. As a result, additional nuanced marketing strategies targeted at different sectors, especially the finance and IT sectors, as identified through the results include: introducing a regulated cryptocurrency market to the Indian public by highlighting their concern for the level of security and attracting them by highlighting how its regulation by authorities would keep in check the threats it poses.
Marcel C. Minutolo, Werner Kristjanpoller, Prakash L. Dheeriya
The importance of cryptocurrency to the global economy is increasing steadily, which is evidenced by a total market capitalization of over $2.18T as of December 17, 2021, according to coinmarketcap.com (Coin, 2021). Cryptocurrencies are too confusing for laymen and require more investigation. In this study, we analyze the impact that the effective reproductive rate, an epidemiological indicator of the spread of COVID-19, has on both the price and trading volume of eight of the largest digital currencies-Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Cardano, and Binance. We hypothesize that as the rate of spread decreases, the trading price of the digital currency increases. Using Generalized Autoregressive Conditional Heteroskedasticity models, we find that the impact of the spread of COVID-19 on the price and trading volume of cryptocurrencies varies by currency and region. These findings offer novel insight into the cryptocurrency market and the impact that the viral spread of COVID-19 has on the value of the major cryptocurrencies.
This paper examines the diversification role of socially responsible investments (SRI) during the COVID-19 pandemic. To assess the contribution to risk diversification and improved financial performance of SRI we analyze the effect of including clean energy equities in portfolios of conventional equities and other assets commonly considered as safe havens. We construct minimum variance portfolios for different rebalancing frequencies and by considering or restricting short positions. Two approaches are applied: AR-GARCH models to fit the marginal distributions of individual assets and DCC skew Student copula specifications to model the conditional dependencies among pairs via the Kendall's tau correlation measure. We provide evidence of the important role that SRI have played in diversifying and improving the financial performance of portfolios based on different securities such as traditional equities, Treasury bonds, gold, crude oil and Bitcoin.
The purpose of the article is to describe the state of the financial market during and after the COVID-19 pandemic. The financial environment is facing new questions about the future, one of which concerns the role played by cryptocurrencies in the coming years. In recent years the cryptocurrency market has been experiencing spectacular growth, with more than 5,500 cryptocurrencies now in existence worldwide. They can either be used as safe haven currencies that provide protection against market volatility or as a payment system with the prospect of consolidation. Whatever the case may be, the pandemic circumstances favour the development of these digital assets. The crisis generated by the pandemic has also affected the value of bitcoin, which has been quite volatile. While it seems to be recovering, the near future is uncertain. The uncertainty brought about by the coronavirus health crisis has caused a general collapse in the stock markets. In this context, the authors review the behaviour of bitcoin, with its dips and recoveries, which can occur in a matter of a few hours. The first months of national lockdowns were mainly marked by social issues. When social distancing has become the norm, cryptocurrencies can play a bigger role than they did previously, driving the evolution of money away from cash in the direction of cashless society.
This study examines the effects of the epidemic and the price bubble on the effectiveness of the cryptocurrency market. In this Research, We collect the daily closing price of 5 cryptocurrencies from https://coinmarketcap.com/. The data was taken from 01 September 2017 to 14 December 2021 with a total data or sample of 1231 daily data from each currency or a total of 6155 samples from a total of all tested currencies. The five cryptocurrencies are Litecoin (LTC), Cardano (ADA), Ethereum (ETH), Ripple (XRP), and Bitcoin (BTC). To measure market inefficiency we use magnitude market inefficiency (MIM) and the study by Le Tran and Leirvik (2019) is used to establish the adjusted magnitude of market inefficiency (AMIM). In this study AMIMt is calculated on a daily frequency by using the daily closing price as the basis for calculation.We found that the three periods of the cryptocurrency bubble in the cryptocurrency market occurred in late 2017, early 2018, and July 2020. The cryptocurrency financial bubble had a lesser impact than the announcement of a worldwide pandemic being declared for COVID-19 on March 11, 2020. It is very likely that a bubble will occur during July 2020 related to the declaration that COVID-19 is a pandemic of global scope.
We investigated COVID-19 cases per country, macro-financial, and crypto market factors that might have affected Ethereum's price return in the top three countries of users, which were also affected by COVID-19 (United States, China, and Germany). Feasible Generalized Least Square (FGLS) was used as the methodology and the generalized method of moments (GMM) was tested for a robustness check. The findings revealed that Ethereum price returns were greatly affected by COVID-19 factors. Meanwhile, macro-financial factors (stock indices and gold) had stronger effects on the return of Ethereum price rather than the crypto market.
Our research investigated the effect of COVID-19 cases (cumulative positive and death cases) on Bitcoin price in the top three infected countries based on WHO (United States, Brazil, and India). Macro-financial and internal factors are employed as the other independent determinants of Bitcoin prices. We utilized feasible generalized least squares (FGLS) alongside generalized method of moments (GMM) for robustness check. The output revealed robustness across different econometric models. The findings unraveled that COVID-19 cumulative positive cases brought positive but insignificant impacts on Bitcoin returns, while its death cases stated the opposite. Macro-financial factors represented by stock indices and gold price imposed that they could be alternative investments to Bitcoin under the uncertain times of COVID-19. Liquidity and volume in respect to return discovery of Bitcoin are imperative instruments, as these internal factors move in the same direction with Bitcoin's demand and return movement. Efficiency in internal factors drives investors’ demand, hence pushing the increase in Bitcoin's return.
Purpose This paper aims to analyse COVID-19 indices and blockchain features on Bitcoin and Ethereum returns, respectively. The authors focus on the most used and owned cryptocurrencies that cover Europe, the US and Asian countries. Design/methodology/approach An autoregressive distributed lag panel (pooled mean group and mean group) is utilized, and a robustness check is incorporated by using a Random Effect Model and Generalized Method of Moments (GMM). Findings Four new findings were discovered, including (1) the vaccine confidence index (VCI) pushes economic recovery and increased demand for the Bitcoin market, but the opposite result was interestingly observed from Ethereum; (2) the blockchain features were revealed to be essential to Bitcoin, while they were irrelevant to Ethereum for short-run country-specific results; (3) the hash rate and network difficulty moved inversely during the pandemic; and (4) the government played a significant role in taking action during uncertain times and regarding cryptocurrency policies. Research limitations/implications VCI is constructed by the most used vaccine type in our sample countries (i.e. Pfizer), as the data for a specific classification by each type is still unavailable. Practical implications Providing an evenly distributed vaccination program primary vaccination series against COVID-19 to the citizens is an essential duty of the government. Bitcoin policymakers and investors should watch the COVID-19 vaccine distributions closely as it will affect its return. Ethereum is emphasized to keep developing its smart contract which appeared to outplay other blockchain features. Cryptocurrency investors should be wise in their investment decisions by analysing the news thoroughly. Social implications This research emphasizes that the success in the roll-out of COVID-19 vaccination requires citizens' willingness to participate and their trust in the vaccine's efficacy. Such self-awareness and self-discipline in society can ultimately empower individuals and stabilise the economy. Nevertheless, the implementation of health protocols is still highly required to prevent the spread of new variants of COVID-19. Originality/value This is the first study that attempts to construct a VCI which denotes the confidence derived from the administration of full-dose COVID-19 vaccines (an initial vaccine and a second vaccine). The authors further find the impact on cryptocurrency returns. Next, blockchain size is utilized as a new determinant of cryptocurrencies.
The Covid-19 crisis, or even the restrictions, quarantines, and lifestyle changes that it brought, occurred in the year 2020. Economic statistics mentioned the effects of the crisis. Stock exchanges around the world, for example, have experienced substantial collapses, leading in a drop in the value of various individuals' assets. During the Covid-19 crisis, this master's study attempts to understand the utility of cryptocurrencies for hedging and safe haven objectives. It's difficult to make consistent conclusions about the suitability of cryptocurrencies for hedging against financial market risks based on existing research. Previous results have varied greatly based on the model utilized, the time period, and the asset risk hedged. Usability for hedging purposes varies in general. In this study, we wrote an article based on the most popular cryptocurrencies in the world and their development mechanisms, history and other facts. The article also discusses the role and importance of cryptocurrencies as a means of payment in the future. Keywords: cryptocurrency, covid-19 crisis, bitcoin, ethereum, blockchain technology
Purpose The paper explores how consumer behavior for purchasing impulse products changed in the complex and disruptive (emergency) situation of the COVID-19 pandemic when the customer is shopping in-home and not visiting the offline stores in an emerging economy context. This paper further explores how digital transformations like the use of blockchain technology can aid offline/omnichannel retailers in reviving sales via permission marketing for impulse products. Design/methodology/approach The authors followed a qualitative research design and conducted 24 personal interviews with millennials and 15 interviews with offline/omnichannel retailers from an emerging economy. The data collected were analyzed using the thematic analysis procedure. Findings The authors discuss their findings under three themes – customers' conscious impulse buying during the pandemic, customers' unconscious impulse buying during the pandemic, and a viable solution for retailers in response to the pandemic. Practical implications The authors suggest that marketers primarily from an offline/omnichannel store should adapt to permission marketing and use technologies like blockchain for the digital transformation of their marketing strategies. Doing so can help offline retailers minimize future damages in the retail sector during emergency situations. Originality/value This paper is one of the first that explores how impulse – pure, suggestion, planned and reminder – purchases got affected during the COVID-19 pandemic disruptions in an emerging economy. This paper is also one of the first to explore the role of permission marketing and digital transformation by the use of blockchain in helping offline retailers in forming swift trust and practice trust-based marketing.
Purpose This article unveils first the lead–lag structure between the confirmed cases of COVID-19 and financial markets, including the stock (DJI), cryptocurrency (Bitcoin) and commodities (crude oil, gold, copper and brent oil) compared to the financial stress index. Second, this paper assesses the role of Bitcoin as a hedge or diversifier by determining the efficient frontier with and without including Bitcoin before and during the COVID-19 pandemic. Design/methodology/approach The authors examine the lead–lag relationship between COVID-19 and financial market returns compared to the financial stress index and between all markets returns using the thermal optimal path model. Moreover, the authors estimate the efficient frontier of the portfolio with and without Bitcoin using the Bayesian approach. Findings Employing thermal optimal path model, the authors find that COVID-19 confirmed cases are leading returns prices of DJI, Bitcoin and crude oil, gold, copper and brent oil. Moreover, the authors find a strong lead–lag relationship between all financial market returns. By relying on the Bayesian approach, findings show when Bitcoin was included in the portfolio optimization before or during COVID-19 period; the Bayesian efficient frontier shifts to the left giving the investor a better risk return trade-off. Consequently, Bitcoin serves as a safe haven asset for the two sub-periods: pre-COVID-19 period and COVID-19 period. Practical implications Based on the above research conclusions, investors can use the number of COVID-19 confirmed cases to predict financial market dynamics. Similarly, the work is helpful for decision-makers who search for portfolio diversification opportunities, especially during health crisis. In addition, the results support the fact that Bitcoin is a safe haven asset that should be combined with commodities and stocks for better performance in portfolio optimization and hedging before and during COVID-19 periods. Originality/value This research thus adds value to the existing literature along four directions. First, the novelty of this study lies in the analysis of several financial markets (stock, cryptocurrencies and commodities)’ response to different pandemics and epidemics events, financial crises and natural disasters (Correia et al., 2020; Ma et al., 2020). Second, to the best of the authors' knowledge, this is the first study that examine the lead–lag relationship between COVID-19 and financial markets compared to financial stress index by employing the Thermal Optimal Path method. Third, it is a first endeavor to analyze the lead–lag interplay between the financial markets within a thermal optimal path method that can provide useful insights for the spillover effect studies in all countries and regions around the world. To check the robustness of our findings, the authors have employed financial stress index compared to COVID-19 confirmed cases. Fourth, this study tests whether Bitcoin is a hedge or diversifier given this current pandemic situation using the Bayesian approach.
Cryptocurrencies and blockchain technology are increasingly loved, especially the COVID-19 pandemic sweeping the world. Some people choose to trade, invest, or mine using cryptocurrency because it is considered practical and able to generate fantastic profits. This article was written to analyze the prospects and implications of using cryptocurrency as a currency. To explore and describe the prospects and implications of cryptocurrency as a currency, a study was conducted with a literature review approach from secondary sources regarding the reasons for the prohibition of cryptocurrencies, the instability of crypto values, and without a clear underlaying of assets. Furthermore, the study in this article is expected to be able to explain the advantages and disadvantages of cryptocurrencies as well as alternative efforts in creating a stable and fair world currency
Dewi Prihatini, Danang Sudarso Widya Prakoso Joyo Widakdo
The study determines the relationship between demographic factors and personality traits with the performance of cryptocurrency traders. The research data is obtained from 100 cryptocurrency traders using the quota sampling method, correlational, with a quantitative approach. This study applies the Chi-square test to examine the relationship of demographic factors with performance and the Rank-Spearman test for the relationship of personality traits with performance. The results found that demographic characteristics (gender, age, length of trading) were positively associated with performance. Furthermore, personality traits (extraversion, agreeableness, conscientiousness, neuroticism, openness to experience) have negative and insignificant influences on the performance of cryptocurrency traders.
In this paper, we investigate the role of Bitcoin as a safe haven against the stock market losses during the spread of COVID-19. The performed analysis was based on a regression model with dummy variables defined around some crucial dates of the pandemic and on the dynamic conditional correlations. To try to model the real dynamics of the markets, we studied the safe-haven properties of Bitcoin against thirteen of the major stock market indexes losses using daily data spanning from 1 July 2019 until 20 February 2021. A similar analysis was also performed for Ether. Results show that this pandemic impacts on the Bitcoin status as safe haven, but we are still far from being able to define Bitcoin as a safe haven.
At the end of 2019, the COVID-19 pandemic that originated from Wuhan - China has become a serious global problem. China implemented a policy of isolation, social distancing, and mass vaccination among the population, and simultaneously its stock market recorded a remarkable growth in 2020 and 2021. Using the time-series data in the period from January 22, 2020, to March 24, 2021, the method of non-linear autoregressive distributed lags (NARDL) model is used to assess the impact of the pandemic on the Shanghai stock market. The research results show that there has been no impact of the pandemic on the Shanghai stock market both in the short and long terms. As for the impact of cryptocurrencies, there is an impact of cryptocurrencies on the stock market in the short term, specifically, a decrease in the price of the bitcoin-related cryptocurrency has significantly increased the Shanghai stock market. Further, there has been no impact between bitcoin-related cryptocurrencies and the stock market in the long term.
A cryptocurrency is a form of digital payment that does not rely on banks to validate transactions. It’s a peer-to-peer payment system that allows anyone from anywhere to send and receive money. Digital currency is the future of finance. India has huge rapid growth opportunities in cryptocurrency adoption. The objective of the study is to understand the growth of cryptocurrency over the year and to compare the conventional investment avenues with the cryptocurrency and SWOT analysis for future prospective of cryptocurrency in India. In India around 20 million active users of cryptocurrency. From July 2020 to June 2021 cryptocurrency market raised 640%in India. During this period from total digital currency transactions from Southern Asia, 42% is coming from the Indian market which is about $10 million. A comparative analysis of conventional investment avenues with cryptocurrency shows that Indian investors still prefer to invest in conventional investment avenues. The reason behind this, a lack of information, security issues, and no regulations for cryptocurrency are seen. SWOT analysis shows that in the Indian market due to a decentralized system, no mediate intervention, low transaction cost, the worldwide accessibility adoption rate is high. The major barrier for cryptocurrency's major weaknesses and threats are highly volatile market, security threats, black marketing, no regulations, threats associated with unknown identity. Still Indian cryptocurrency market is huge, and growth is high in the future.
S. K. Joshi, Manu Sharma, Rashmi Prava Das, Kamalakanta Muduli · 8 authors
The COVID-19 pandemic has affected more than 214 countries across the world, disrupting the supply of essential commodities. As the pandemic has spread, humanitarian activities (HAs) have attempted to manage the various situation but appear ineffective due to lack of collaboration and information sharing, inability to respond towards disruption, etc. This study aims to determine and provide insights into the critical factors that may enhance the effectiveness of HAs during the pandemic. A systematic literature review was undertaken to explore critical factors and validated by experts using the fuzzy–Delphi method. These were further assessed to identify the cause-and-effect relationship by means of the fuzzy decision-making trial and laboratory (DEMATEL) method. The results show that building a blockchain-enabled digital humanitarian network (BT-DHN) is the most significant factor during the pandemic. The use of digital platforms for sharing real-time information enhances the effectiveness of HAs. This study offers stakeholders, policymakers, and decision-makers the opportunity to consider these factors in strategic planning to deal with pandemic disruption.