This study examines the relationship between investor attention and herding effects in the cryptocurrency market by employing the vector autoregression and quantile regression models. Furthermore, we examine whether the COVID-19 pandemic affected herding behaviour in cryptocurrencies. Using the daily closing price and Google search volume of the five leading cryptocurrencies, the paper finds that herding in the cryptocurrency market decreases with an increase in investor attention for the overall sample. The results for the COVID-19 period indicate that the impact of investor attention on the herding effect decreases due to increased attention to the pandemic. This study is one of the initial attempts to examine the impact of investor attention on herding in cryptocurrencies.
The coronavirus pandemic (COVID-19) threatens people’s health. During the COVID-19 outbreak, people are encouraged to wear masks to reduce the spread of the virus. With the strong demand for masks, it has come a boom in counterfeit production. Combating counterfeit masks is vital and urgent to reduce the risks for public health. Motivated by the actual practices during the COVID-19, we examine how quality inspection and blockchain adoption help combat counterfeit masks. We find that quality inspection may not be always effective, as the government will tolerate the presence of counterfeit masks if the presence of the counterfeits is not significant. Comparing quality inspection with blockchain adoption, when the spread of COVID-19 is mild, authentic mask sellers may be encouraged to use the blockchain technology, which can increase their profits and reduce the social health risk. Furthermore, we extend our model to investigate the impacts of endogenous quality. Both quality inspection and blockchain adoption can induce low-quality mask sellers to enhance thequality level. When the number of counterfeit masks is increasing, encouraging the high-quality mask sellers to adopt the blockchain technology is effective to reduce social health risk when the spread of the coronavirus is rapid.
This paper sets under scrutiny whether the S&P500, oil, and Twitter-based uncertainty about financial markets affect the returns and volatility of three major cryptocurrencies.Estimations are conducted concerning Bitcoin, Bitcoin Cash, and Dogecoin during the first wave of the COVID-19 pandemic.Findings document that Twitter uncertainty exhibits a weaker impact on cryptocurrencies than the S&P500 and crude oil.S&P500 constitutes a positive and significant determinant while impacts of oil are weaker and mixed.The volatility of cryptocurrencies is found to display a non-linear character.Moreover, it is revealed that Dogecoin could be more useful to investors as a speculative tool than Bitcoin and Bitcoin Cash.These outcomes inform the interested reader that traditional investments are influential in a much larger degree towards modern financial assets than investor sentiment when economic conditions are stressed.
Purpose This paper aims to analyze the time-varying connectedness of gold-backed cryptocurrencies and gold. This study determines the volatility spillovers in these two asset classes and the performance of bivariate portfolios based on net pairwise spillovers. Design/methodology/approach This research uses two Islamic and four conventional gold-backed cryptocurrencies and gold as variables. GJR-GARCH method under corrected DCC (cDCC) of Aielli (2013) evaluates the dynamic connectedness. Additionally, the spillovers are created using the dynamic connectedness of Diebold and Yilmaz (2012). A network-based spillover of Diebold and Yılmaz, (2014) is also made. A dynamic optimal weights strategy optimized with DCC-t-Copula determines bivariate portfolios’ performances. In general, there are 21 bivariate portfolios. Findings The outbreak of COVID-19 increases the dynamic connectedness of gold and gold-backed cryptocurrencies, which indicates a contagion effect. The results show that gold is the net volatility receiver during the COVID-19 pandemic. Moreover, a portfolio composed of gold and gold-backed cryptocurrency provides high profitability performance but zero hedge effectiveness under optimal weights strategy. Practical implications According to bivariate portfolios based on net pairwise spillovers, gold-backed cryptocurrencies' investors should not add gold to their portfolio during the pandemic because it is a net receiver of risk from the cryptocurrencies. Originality/value To the best of the author’s knowledge, this is the first paper to create bivariate portfolios composed of gold-backed cryptocurrencies and their underlying asset using DCC-t-Copula.
In this paper, we examine the presence of herding in cryptocurrency market for four distinct sub-periods (Pre and During COVID-19 period, bear and bull markets) using daily closing prices of 5 largest cryptocurrencies by market capitalization (Bitcoin, Ethereum, XRP, Stellar and Tether) from April 20, 2019 to January 31, 2021. The study employs cross-sectional absolute deviations (CSAD) model to test herd behavior and the results of the study provide evidence of herd behavior in the whole market for the selected period under study. The study also proofs the presence of herding during COVID-19 period and in positive market returns. These indicate that, investors in the cryptocurrency market, during COVID-19 periods, and in bullish market are inclined to the investment behavior of other peer investors in the market. The study is significant to investors, regulators and players in the cryptocurrency market so as to deepen their understanding of herding behavior since herding is thought to increase the volatility of the market. The study is significant to investors, regulators and players in the cryptocurrency market so as to deepen their understanding of herding behavior since herding is thought to increase the volatility of the market.
This study examines how Bitcoin’s trading characteristics react to the COVID-19 pandemic, using detailed futures trading data from the Chicago Mercantile Exchange. The results show that volume-weighted Bitcoin futures return responds positively to the spikes of public interest. Meanwhile, the surges of pandemic information do not harm market quality. Volume, bid-ask spread, and trading frequency remain stable, indicating that the positive price reaction is not a result of a few small uninformed trades. Bitcoin's conditional beta on the S&P 500 index drops to near zero, while the conditional beta on gold more than doubles. These results indicate that traders have been using Bitcoin as a safe-haven asset after the pandemic outbreak.
The Bitcoin market has become a research hotspot after the outbreak of Covid-19. In this paper, we focus on the relationships between the Bitcoin spot and futures. Specifically, we adopt the vector autoregression-dynamic correlation coefficient-generalized autoregressive conditional heteroskedasticity (VAR-DCC-GARCH) model and vector autoregression-Baba, Engle, Kraft, and Kroner-generalized autoregressive conditional heteroskedasticity (VAR-BEKK-GARCH) models and calculate the hedging effectiveness (HE) value to investigate the dynamic correlation and volatility spillover and assess the risk reduction of the Bitcoin futures to spot. The empirical results show that the Bitcoin spot and futures markets are highly connected; second, there exists a bi-directional volatility spillover between the spot and futures market; third, the HE value is equal to 0.6446, which indicates that Bitcoin futures can indeed hedge the risks in the Bitcoin spot market. Furthermore, we update the data to the post-Covid-19 period to do the robustness checks. The results do not change our conclusion that Bitcoin futures can hedge the risks in the Bitcoin spot market, and besides, the post-Covid-19 results indicate that the hedging ability of Bitcoin futures increased. Finally, we test whether the gold futures can be used as a Bitcoin spot market hedge, and we further control other cryptocurrencies to illustrate the hedging ability of the Bitcoin futures to the Bitcoin spot. Overall, the empirical results in this paper will surely benefit the related investors in the Bitcoin market.
Purpose After the COVID-19 outbreak, the Federal Reserve has undertaken several monetary policies to alleviate the pandemic consequences on the stock markets leading to a misunderstanding on the cryptocurrency market response. This paper aims to evaluate the effects of the Federal Reserve monetary policy on the Islamic and conventional cryptocurrency dynamics during the COVID-19 pandemic. We, specifically, examine the associate bubbles and feedbacks effects. Design/methodology/approach This paper developed a novel methodology that detects market bubbles using the statistical indicators defined by Psychological (PSY) tests. It also investigated the effect of the Federal Open Market Committee (FOMC) announcements on conventional and Islamic cryptocurrencies compatible with Islamic laws “Shari’ah” by using the event-driven regression. Findings The empirical results show that the FOMC announcements have a positive significant effect after one day of the event and a negative effect before two days of the announcement on the conventional cryptocurrency markets. However, the reaction of Islamic cryptocurrencies to these events is not significant except for Hello Gold after one day of the announcement. Besides, the Hello Gold and X8X cryptocurrencies present no bubbles during this period. However, Bitcoin and Ethereum markets have short-lived bubbles. Research limitations/implications The main contribution of this study is the investigation of the response and vulnerability to pandemic shocks of a new category of cryptocurrencies backed by tangible assets. This work has practical implications as it provides new insights into trading opportunities and market reactions. Originality/value To our knowledge, this work is the first study that compares the response of Islamic and conventional cryptocurrency markets to FOMC announcements during the COVID-19 pandemic and examines the presence of bubbles in these markets. Besides, the originality of this work is derived from the novelty of the data employed and the method used (PSY tests) in this study.
This study is aimed to study, analyse and understand the attitude of millenials towards cryptocurrency. The questionnaire was formed to collect data. This paper will be beneficial to the upcoming or existing companies of cryptocurrency to estimate their future viability based on age factor. The research was also aimed to understand the millenials attitude towards various cryptocurrencies and also to know the reasons behind. The research aimed to analyse the data collected and conclude the overall attitude of millenials towards cryptocurrency. The findings confirmed the existence of differences in attitude towards crypto currencies based on age factors.
This letter revisits the time-series relation between cryptocurrency prices and forward inflation expectations. Using wavelet time-scale techniques, a positive link between cryptocurrencies and forward inflation rates is identified, focused on a brief period surrounding the onset of the COVID-19 pandemic. This coincides with a rapid and synchronized decrease in cryptocurrency prices and forward inflation expectations, followed by a swift recovery to pre-crisis levels. Outside of the crisis period, we find no clear evidence of any inflation hedging capacity of Bitcoin or Ethereum during times of increasing forward inflation expectations.
Maria Papadaki, Ioannis Karamitsos, Marinos Themistocleous
Purpose The purpose of this study is to investigate how healthcare and public organizations can control and monitor digital health test certificates with citizens or other stakeholders using Blockchain platforms. The paper reviews and analyses the literature by focusing on keywords like “Blockchain AND COVID-19”. In response to the 2019 pandemic, most local governments closed their borders and imposed movement restrictions, impacting the global economy, peoples' mobility and everyday life. This study aims to provide a solution to how Blockchain technology can improve the socioeconomic impacts of coronavirus disease 2019 (COVID-19) by enhancing people's mobility and achieving a balance between protecting individuals' rights and public health safety. Design/methodology/approach This research utilized machine learning bibliometric tools for investigating the normative literature in the area of blockchain and COVID-19. The article conducts a systematic literature review and develops a bibliometric map based on Plevris et al.’s (2017) method. Findings This study indicates that there is limited literature on the use of blockchain technology in issuing and validating COVID-19 tests. The development of such solutions can be done through the utilization of smart contracts, and it is expected to increase mobility in a secure and trusted environment that will help in monitoring and slow down the spread of the pandemic. Research limitations/implications This analysis is done during the first ten months of the pandemic outbreak, and there is still limited scientific literature investigating blockchain and COVID-19 concepts. Practical Implications Organizations are rethinking their information management due to the COVID-19 pandemic for creating better value for the enterprise and all associate stakeholders. Blockchain technology helps organizations to move from a centralized to a decentralized way of information managing. The decentralization of information in the health-care sector will create a better value for all involved stakeholders and radical change in how health-care data are managed and controlled. The implementation of blockchain applications in the health-care industry will result in a more secure, visible, auditable environment accessible by all the parties involved. Originality/value It was identified that there is currently limited research done on aligning smart contracts structure within the health-care sector. Therefore, while the current literature demonstrates the importance of aligning the key concepts, little research is done on considering people’s mobility and cross-country communication.
Zaghum Umar, Francisco Jareño, María de la O González
This research explores the impact of COVID-19-related media coverage on the dynamic return and volatility connectedness of the three dominant cryptocurrencies (Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP)) and the fiat currencies of the euro, GBP and Chinese yuan. The sample period covers the first and second devasting waves of the COVID-19 pandemic crisis and ranges from January 1, 2020, to December 31, 2020. The dynamic return and volatility connectedness measures are estimated using the time varying parameter-VAR approach. Our return connectedness analysis shows that the media coverage index (only before the first wave) and the cryptocurrencies are the net transmitters of shocks while the fiat currencies are the net receivers of shocks. Similar results are obtained in terms of volatility, except for the euro, which shows a clear net receiver profile in January and February. This fiat currency (the euro) became a net transmitter in March and during the first wave of the COVID-19 crisis, which possibly shows the virulence of the pandemic on the European continent. Moreover, the most relevant differences between the net dynamic (return and volatility) connectedness of these two groups of currencies are focused on the beginning of the sample period, just before the first wave of the SARS-CoV-2 pandemic crisis, although some differences are observed during the first and second waves of the coronavirus outbreak.
Yangchun Xiong, Hugo K.S. Lam, Ajay Kumar, Eric W.T. Ngai · 6 authors
Purpose Although there have been considerable discussions on the business value of adopting blockchain in supply chains, it is unclear whether such blockchain-enabled supply chains (BESCs) can help firms mitigate the negative impact resulting from the recent COVID-19 pandemic. This study aims to answer this important question. Design/methodology/approach The authors conduct an event study to quantify the financial effects of the COVID-19 pandemic and compare the differences in such effects between treatment firms that have adopted BESCs and matched control firms that have not adopted BESCs. The authors also perform a regression analysis to examine how the role of BESCs in mitigating COVID-19's negative impact varies across firms with different levels of supply chain leanness and complexity. The analysis is based on 88 treatment firms and 88 matched control firms, all of which are publicly listed on the US stock markets. Findings The test results suggest that although both the treatment and control firms are negatively affected by the COVID-19 pandemic, the effect is less negative for the treatment firms compared to the control firms, demonstrating the role of BESCs in mitigating the negative impact caused by the COVID-19 pandemic. Moreover, the mitigating role of BESCs is more pronounced for firms with lean and complex supply chains. Originality/value This study is among the first to provide empirical evidence on the mitigating role of BESCs during the COVID-19 pandemic, highlighting the importance of adopting blockchain in supply chains with high uncertainties and disruption risks.
Tamara Islam Meghla, Md. Mahfujur Rahman, Al Amin Biswas, Jeba Tahsin Hossain · 5 authors
Vaccination of the global population against COVID-19 is one of the challenging tasks in supply chain management that humanity has ever faced. The rapid roll-out of the COVID-19 vaccine is a must for making the worldwide immunization campaign successful, but its effectiveness depends on the availability of an operational and transparent distribution chain that can be audited by all related stakeholders. In this paper, the necessity of Blockchain and Machine Learning in supply-chain management with demand forecasting of the COVID-19 vaccine has been presented. The aim is to understand how the convergence of Blockchain technology and ML monitor the prerequisite of vaccine distribution with demand forecasting. Here, we have proposed an approach consists of Blockchain and Machine Learning which will be used to ensure the seamless COVID-19 vaccine distribution with transparency, data integrity, and end-to-end traceability for reducing risk, assuring the safety, and also immutability. Besides this, we have performed demand forecasting for appropriate COVID-19 vaccines according to the geographical area and the storage facilities. Lastly, we have discussed research challenges and also mentioning the limitations with future directions.