Blockchain Papers

Zishu Cheng, Mingchen Li, Ruhong Cui, Yunjie Wei · 6 authors

No abstract is available for this record.

Naji Mansour Nomran, Abdelkader Laallam, Razali Haron, Aghilasse Kashi · 6 authors

The rapid rise and widespread global adoption of cryptocurrencies in recent years has fundamentally transformed the international financial landscape, with digital assets increasingly being recognized for their potential to influence the stability and performance of traditional capital markets. Against this backdrop, this study aims to empirically investigate the impact of cryptocurrency returns on Islamic vs. conventional stock returns in Gulf Cooperation Council (GCC) countries. The salient distinctions between Islamic and conventional stock markets include fundamental differences in principles, investment allocations, and risk profiles, underscoring the importance of examining the impact of cryptocurrency returns on these distinct equity segments. Daily data were collected from stock indices in five GCC countries over the period 2016–2019, including two sub-periods: before and after the 2017 crypto crash. Pooled OLS, fixed effects, random effects, and generalized linear models (GLMs) were used to analyze the data collected during the study. With the GCC increasingly focusing on cryptocurrency markets, there is growing concern about these markets’ potential impact on regional stocks. This study addresses the important questions of whether the impacts of the cryptocurrency market on Islamic vs. conventional stock markets differ throughout the GCC region and how these impacts have evolved since the crypto crash period. The findings reveal that cryptocurrency returns had a negative impact on both GCC Islamic and conventional stock market returns for the full sample period (2016–2019), and the negative effect was far more pronounced for conventional stocks. For the two sub-periods before and after the crash, only the cryptocurrency market and conventional GCC stocks remained negatively correlated, while the cryptocurrency market and the GCC Islamic stock markets became uncorrelated. Thus, for the calmer sub-periods before and after the crypto crash, the rise in cryptocurrency returns may have enticed GCC investors away from conventional stocks, perhaps resulting in a decline in their investment in these stocks. Meanwhile, those who invest in Islamic stocks may not be exposed to this temptation.

Marta Maciejasz, Robert Poskart, Daria Wotzka

Research background: Despite the fact that the issue of private, decentralized digital money (cryptocurrencies) is already quite extensively described in the literature dedicated to the financial system, especially its periphery, there is a deficiency in terms of research on the opinions of participants in the financial system, based on trust in money and its widespread acceptance. International comparative studies are lacking, particularly those conducted before and after the COVID-19 virus pandemic. The pandemic showed that people had significantly changed their willingness to use different forms of money. Being isolated at home and avoiding direct contact with others, people started to use digital money more frequently. Purpose of the article: In response to the identified research gap, this study reports research results on the perception of cryptocurrencies by young financial market participants. It attempts to provide answers to the following research questions: (1) Has the COVID-19 pandemic and the lockdown of economies caused changes at the international level in perceptions and attitudes toward the traditional monetary system and cryptocurrencies? (2) Has the COVID-19 pandemic changed perceptions of cryptocurrencies as a potential alternative to current fiat money? Methods: To evaluate respondents’ opinions, a survey in the form of a questionnaire was conducted. The respondent groups in 2019/2020 were N = 171 (Germany = 143 and Poland = 128), while in 2021, N = 157 (Germany = 95 and Poland = 62). For analytical purposes, statistical analysis using the Z ratio test was used to capture the characteristics of the response distributions and the relationships between them. These two moments in time allowed us to determine whether there were significant changes between opinions before and after COVID-19. Findings & value added: The study’s results showed that while there are significant differences in perceptions of the traditional monetary system and cryptocurrencies due to a variety of factors, the COVID-19 pandemic and the shutdown of economies did not cause statistically significant differences in this regard.

Sirui Han, Haitian Lu, Hao Wu

Purpose Our analysis is targeted at researchers in the fields of economics and finance, and we place emphasis on the incremental contributions of each paper, key research questions, study methodology, main conclusions and data and identification tactics. By focusing on these critical areas, our review seeks to provide valuable insights and guidance for future research in this rapidly evolving and complex field. Design/methodology/approach This paper conducts a structured literature review (SLR) of Bitcoin-related articles published in the leading finance, economics and accounting journals between 2018 and 2023. Following Massaro et al. (2016), SLR is a method for examining a corpus of scholarly work to generate new ideas, critical reflections and future research agendas. The goals of SLR are congruent with the three outcomes of critical management research identified by Alvesson and Deetz (2000): insight, critique and transformative redefinition. Findings The present state of research on Bitcoin lacks coherence and interconnectedness, leading to a limited understanding of the underlying mechanisms. However, certain areas of research have emerged as significant topics for further exploration. These include the decentralized payment system, equilibrium price, market microstructure, trading patterns and regulation of Bitcoin. In this context, this review serves as a valuable starting point for researchers who are unacquainted with the interdisciplinary field of bitcoin and blockchain research. It is essential to recognize the potential value of research in Bitcoin-related fields in advancing knowledge of the interaction between finance, economics, law and technology. Therefore, future research in this area should focus on adopting innovative and interdisciplinary methods to enhance our comprehension of these intricate and evolving technologies. Originality/value Our review encompasses the latest research on Bitcoin, including its market microstructure, trading behavior, price patterns and portfolio analysis. It explores Bitcoin's market microstructure, liquidity, derivative markets, price discovery and market efficiency. Studies have also focused on trading behavior, investors' characteristics, market sentiment and price volatility. Furthermore, empirical studies demonstrate the advantages of including Bitcoin in a portfolio. These findings enhance our understanding of Bitcoin's potential impact on the financial industry.

Thusyanthy Lavan, Brett Martin, Weng Marc Lim, Linda D. Hollebeek

This study examines the impact of social isolation on risk-taking behavior in highly uncertain environments with the potential for significant gains and losses. We uncover both direct and indirect effects of social isolation on risk-taking behavior, mediated through perceived stress, sense of control, and neuroticism. The COVID-19 pandemic provides a pertinent context to explore these dynamics, while the volatile cryptocurrency market serves as a topical context for investigation. The analysis based on covariance-based structural equation modeling (CB-SEM) of survey responses from 216 consumers reveals that social isolation significantly increases risk-taking behavior, primarily mediated by heightened perceived stress. Contrary to expectations, sense of control and neuroticism did not mediate this relationship, indicating specific pathways through which isolation affects risk decision. This finding suggests that while social isolation intensifies perceived stress, yielding riskier purchase decisions, it does not universally impact other psychological aspects like resilience (sense of control) or vulnerability (neuroticism). The observed direct (main) and indirect (mediation) effects highlight the importance of targeted interventions to address psychological well-being, particularly at times of enforced isolation. Understanding these dynamics can help advisors (e.g., financial consultants), marketers, and policymakers (e.g., government agencies/lawmakers) formulate strategies to curb excessive risk-taking among isolated individuals, particularly in high-risk financial settings.

Pengcheng Zhang, Kunpeng Xu, Jian Huang, Jiayin Qi

Abstract This study employs a fixed-effects model to investigate the holiday effect in the cryptocurrency market, using trading data for the top 100 cryptocurrencies by market capitalization on Coinmarketcap.com from January 1, 2017 to July 1, 2022. The results indicate that returns on cryptocurrencies increase significantly during Chinese holiday periods. Additionally, we use textual analysis to construct an investor sentiment indicator and find that positive investor sentiment boosts cryptocurrency market returns. However, when positive investor sentiment prevails in the cryptocurrency market, the holiday effect weakens, implying that positive investor sentiment attenuates the holiday effect. Robustness tests based on the Bitcoin market generate consistent results. Moreover, this study explores the mechanisms underlying the cryptocurrency holiday effect and examines the impact of epidemic transmission risk and heterogeneity characteristics on this phenomenon. These findings offer novel insights into the impact of Chinese statutory holidays on the cryptocurrency market and illuminate the role of investor sentiment in this market.

Caroline Ribeiro dos Santos, Luiz Rzezak, Pablo Augusto Barranjard Rocha, Rodrigo de Oliveira · 6 authors

O artigo visa analisar o impacto comportamental da pandemia do Coronavírus nos mercados de criptomoedas, com foco nas moedas Bitcoin e Ethereum. Utilizando métodos tradicionais de análise financeira e técnicas avançadas de computação, o estudo investiga a volatilidade dessas criptomoedas durante o período da pandemia, identificando padrões e tendências de preço. Por meio da linguagem Python e ferramentas de análise de dados, foram aplicadas regressões LOWESS para suavizar a tendência dos preços e identificar possíveis influências da pandemia nos mercados de criptomoedas através de gráficos. A geração de gráficos para visualização dos resultados foi uma parte crucial do estudo, pois permitiu uma análise mais intuitiva e acessível das tendências e padrões identificados. Por meio desses gráficos, foi possível visualizar de forma clara e concisa como o preço das criptomoedas Bitcoin e Ethereum se comportou durante o período da pandemia, destacando momentos de volatilidade, tendências de alta ou baixa e possíveis correlações com eventos específicos. Essa visualização facilita a interpretação dos resultados e a comunicação das conclusões do estudo para diferentes públicos, incluindo investidores, acadêmicos e profissionais do mercado financeiro.

Praveen Singh Chauhan, Ram L. Kumar

The global financial crisis of 2008-09 marked a pivotal moment in the history of finance, exposing vulnerabilities in the traditional banking system. It was during these tumultuous times that Satoshi Nakamoto introduced the world to Bitcoin, a revolutionary digital currency underpinned by blockchain technology. This paper explores the multifaceted impact of cryptocurrencies and blockchain, shedding light on their role in reshaping the financial landscape and addressing various societal challenges. The study begins by dissecting the roots of the financial crisis, emphasizing the role of centralization and opaque financial products in its genesis. It then delves into the birth of Bitcoin as an alternative monetary system and the ingenious solutions proposed by Nakamoto, notably the blockchain ledger. The blockchain, with its decentralized and transparent nature, promises to disrupt not only banking but also various industries and government processes. Furthermore, the paper examines the broader implications of cryptocurrencies, focusing on their potential to empower marginalized populations, facilitate cross-border remittances, and promote a cashless economy. It also discusses how blockchain technology is being adopted by major financial institutions and governments worldwide, paving the way for more efficient and secure transactions. However, the rise of cryptocurrencies has not been without challenges. The study explores the dark side of digital currencies, detailing how they have been exploited for illicit activities, particularly through privacy-centric cryptocurrencies like Zcash, Dash, and Monero. These cryptocurrencies offer anonymity that presents law enforcement agencies with significant challenges in tracing criminal activities, such as black-market transactions and ransomware payments.

Nishi Malhotra

The study provides a comprehensive exploration of the factors influencing the adoption of Bitcoin and cryptocurrency as investment options, with a focus on addressing research gaps in personal finance related to household cryptocurrency adoption. Key points of investigation include understanding the financial inclusion and demographic characteristics that influence household adoption of Bitcoin, measuring its profitability, and determining its impact on household wealth. The study also examines the impact of miner's revenue on cryptocurrency prices and seeks to validate the presence of volatility in the Bitcoin market. To address the influence of financial inclusion and demographic factors, the study utilizes the CMIE Peopledx database and logistic regression to measure the impact of existing borrowings and savings on the adoption of Bitcoin or cryptocurrency. The findings validate that saving and investing in formal financial instruments lead to higher cryptocurrency investment, with access to commercial banks and ATM usage also contributing positively.

Carla Zarbà, Gaetano Chinnici, Agata Matarazzo, Donatella Privitera · 5 authors

The agri-food sector has come under increasing pressure to increase safety standards. Both consumers and expert authorities are demanding that the agri-food chain implement higher levels of traceability and transparency to make the system less susceptible to fraud and to ensure higher quality. These needs have become even more pressing following food scandals that occurred in the 2000s. Recent European policies have supported the growth of technological and digital innovations in firms, recognizing that digitization has a strategic role to play in modernizing the agri-food sector and moving toward ecological transition. This paper aims to verify whether blockchain’s cutting-edge technology can provide effective technical and strategic support to the agri-food system in achieving the aforementioned goals. A total of 123 articles underwent descriptive analysis and network analysis focusing on the topic of blockchain in the agri-food context. The methods used were the Preferred Reporting Items for Systematic Reviews and Meta-analyses (PRISMA) protocol and VOSviewer software. The results highlight the growing importance of (and increased interest in) blockchain and its functionality when applied to the agri-food sector.

Ibrahim Alrashdi, Ali Alqazzaz

The advent of smart cities has paved the way for transformative advancements in healthcare, particularly in the domain of disease diagnosis. In the wake of the COVID-19 pandemic, accurate and timely identification of Pandemic diseases has become paramount. This paper explores the challenges and opportunities in synergizing Artificial Intelligence (AI), Internet of Things (IoT), and Blockchain technologies for diagnosis of Pandemic diseases in smart cities. This study provides an overview of each technology and its relevance to sustainable healthcare in smart cities, emphasizing its potential for analyzing medical data and making informed decisions. We also explore how IoT devices can contribute to disease surveillance, enabling real-time data collection and remote healthcare. Additionally, we discuss the potential of Blockchain in ensuring secure and transparent healthcare systems. Following, the paper study the synergistic potential of integrating AI, IoT, and blockchain, emphasizing how their combined strengths can enhance the accuracy, efficiency, and security of COVID-19 diagnosis systems in smart cities Moreover, the paper highlights the challenges in integrating these technologies and the opportunities for research and implementation, underlining the significance of synergizing AI, IoT, and Blockchain in disease diagnosis in smart cities. The findings demonstrate that the convergence of AI, IoT, and blockchain can enhance the speed and accuracy of diagnosing Pandemic diseases, leading to more effective containment and management strategies.

Mehmet Uzun

Bitcoin and cryptocurrencies have recently rekindled discussions in financial circles, both due to their technologies and price movements. The increasing inclination of investors who seek returns and embrace risk towards cryptocurrency markets is evident, driven by sudden price fluctuations. The potential of cryptocurrencies to serve as alternatives to traditional investment instruments continues to be debated within the financial framework. Researchers are persistently exploring financial instruments associated with the price fluctuations of Bitcoin and cryptocurrencies. This study investigates the interest in Bitcoin in Türkiye within the scope of Bitcoin trading volume and the "Bitcoin" search results on Google Trends. Bitcoin trade volume of BTCTurk and Paribu, two cryptocurrency exchanges operating in Türkiye, and Bitcoin search data on Google were included in the study. In this context, the long-term relationship between Bitcoin trading volume and Google Trends results is examined using the Engle-Granger cointegration test, and the existence of causality is explored through the Toda-Yamamoto causality test. According to the findings of the study, a cointegration relationship among the variables is identified. It is revealed that there is no bidirectional causality between Bitcoin trading volume and Google Trends search results. However, it is established that Google Trends is the cause of Bitcoin trading volume.

Satish Kumar

Purpose We aim to examine the impact of COVID-19 on the efficiency of Gold and Bitcoin returns. In particular, our efficiency tests are based on the popular calendar anomaly, the turn-of-the-month (TOM) effect in these markets. Design/methodology/approach We define the TOM days as the final trading day of a month and initial three trading days of the immediate next month. To understand the TOM effect, we estimate the typical Ordinary Least Squares (OLS) regression model using the Heteroskedasticity and Autocorrelation Consistent (HAC) standard errors and covariances. Findings Though in the full sample, a positive and significant TOM effect is observed only for Bitcoin, during COVID period, the TOM effect appears in Gold returns and becomes stronger for Bitcoin, implying that the considered securities become inefficient during COVID period. Practical implications Based on these results, we create a trading strategy which is found to surpass the buy-and-hold strategy for both the full sample as well as the COVID period for Bitcoin while only during the COVID period for Gold. Our results provide useful implications for investors and policymakers as the Gold and Bitcoin markets can be timed by taking positions especially based on the behavior of the TOM effect. Originality/value We examine the TOM effect in the two important securities – Gold and Bitcoin. Though, a few studies have examined this anomaly in currency, equity and cryptocurrency markets, however, they have not considered the Gold market. Additionally, no study has examined the impact of COVID-19 on the TOM effect in these markets, and hence, market efficiency. We believe that our study is the first to examine the TOM effect in these markets simultaneously.

Amy Held

In modern private international law (PIL), property and situs apparently go hand in hand in an established PIL monogamy to which there tends to be a collective commitment for all PIL aspects of a cross-border dispute for all PIL subcategories of property objects. This article argues that mechanistic deference to such apparent property-situs monogamy as an overarching rule in the PIL of property is not only misconceived; but is positively impeding progress in the modern PIL debates surrounding property rights in modern decentralised objects such as bitcoin. It therefore examines the discrete justifications for the situs rules to show that the apparent property-situs monogamy is actually the cumulative effect of a wide variety of situation-specific considerations in what is really a property-situs situationship. Hence, from an analysis of the situs rules, and the principles underpinning international jurisdiction and applicable law more generally, it suggests alternative property PIL solutions to the intractable problems posed by decentralised phenomena based on policy considerations rather than continued focus on the property object itself as the “natural seat” of a property relationship.

Nguyen Thi Phuong Dung, Tran Minh Hoang, Nguyen Thi Mai Anh, Dang Huong Giang

Purpose: This article clarifies the factors influencing individual investors' Bitcoin investments in the Vietnamese stock market. Design/methodology/approach: We employed the Theory of Planned Behavior (TPB) and Technology Acceptance Model (TAM), a comprehensive survey with 300 responses, and quantitative analysis using SmartPLS from December 2022 to March 2023. Findings: The findings reveal that the perceived usefulness of the Bitcoin market, subjective norms, self-efficacy, and herd behavior positively impact the Bitcoin investment decisions of individual investors in Vietnam. Research, Practical & Social Implications: This study provides regulators and relevant agencies with more practical evidence regarding the Bitcoin market, facilitating the formulation of appropriate management policies in an emerging economy. Originality/value: There is a shortage of research on the Bitcoin cryptocurrency investment market from the perspective of individual investors in emerging countries like Vietnam. Therefore, this study tries to shed light on individual investors with a comprehensive and objective overview to consider before making investment decisions. Additionally, the results can offer managers and relevant agencies empirical evidence to promulgate future regulations on the Bitcoin market.

Erhan Daştan, Hüseyin Dağlı

The aim of this study is to examine whether the assets known as safe-haven assets during crises fulfill these qualities for equity investors in Turkey during the Covid-19 pandemic. According to the results obtained under the assumption of GJR-GARCH (1,1) error terms, no asset has shown safe-haven characteristics against the stock market. However, when the BIST100 index depreciates by 5%, Ethereum, silver and Government Bonds show strong safe-haven characteristics, US dollar and Euro show weak safe-haven characteristics. When the BIST100 index depreciates by 2.5%, Bitcoin, gold and DJIMTR show weak safe haven asset characteristics. If BIST100 depreciates by 1%, gold and Government Bonds show strong safe-haven characteristics, and Bitcoin, Ethereum, Silver, the US dollar and Euro show weak safe-haven characteristics.

Mengting Yu, Ludovica Principato, Marco Formentini, Giovanni Mattia · 7 authors

Food insecurity and food surplus are two pressing issues that have been exacerbated by the COVID-19 pandemic. This paper presents a novel approach to addressing these problems using blockchain technology. More specifically, data from the Italian Regusto platform are analysed to identify factors that determine the volume and economic value of surplus food redistribution. From a methodological statistical perspective, the performance of Stepwise Multiple Linear Regression and Random Forest are compared in a blockchain data analysis. The effective machine-learning-based analysis reveals that the Regusto platform gives people greater access to the surplus food redistributed by non-profit organisations and suppliers through both donations and sales. The study also highlights the potential effects of redistributing surplus food on the beneficiaries' diets and health and we find that redistributing surplus food can reduce household food insecurity among low-income families and communities measured by food poverty and COVID-19 indexes at different spatial locations. Overall, by offering a unique perspective on these issues through the lens of blockchain technology, our study can inspire further research on how this technology can ensure everyone has enough affordable, nutritious food to lead healthy lives.

Mohammad Rakibul Islam Bhuiyan, Most. Sadia Akter

In recent years, both researchers and internet users have been attracted to the concept of blockchain technology for transforming smart Bangladesh. This study focuses on the possibilities of blockchain technology leading to the transformation of Bangladesh into a smart nation. This article also explains the working procedure and potential usage of the blockchain concept in Bangladesh. The study is mainly focused on qualitative approaches. The researcher used the PRISMA 2020 platform to identify and choose relevant studies and reports from indexed publications. As the idea of block chain technology is very new and not being adopted by all the sectors of Bangladesh's economy, that’s why only secondary data were used to conduct the study. The researcher has tried to find the different potential areas of blockchain technology from such developing countries like Bangladesh. The potential areas, such as the supply chain management, voting system, and health care industry, where blockchain can be implemented by introducing different polices and regulations. From the implication point of view, blockchain technology might be implemented to transform smart Bangladesh within 2041 if adequate regulations can be undertaken by concerned authority. This revolutionary technology has great potential and has recently caused upheaval. Based on the descriptive study, some of the relevant recommendations including suggestions for reducing challenges of using blockchain are discussed and future research works can be continued in both academic and business sectors in Bangladesh based on this finding.

Rajeev K. Goel, Ummad Mazhar

No abstract is available for this record.

Ritesh Patel, Mariya Gubareva, Muhammad Zubair Chishti, Тамара Теплова

This paper studies dynamic connectedness between four prominent healthcare cryptocurrencies, namely MediBloc, MediShares, Medicalchain, and Dentacoin, and bond, equity, and commodity markets along with USD and Bitcoin. The daily data span from February 2018 to April 2023. We applied the quantile VAR method and the wavelet quantile correlation approach to measure the connectedness. The quantile VAR method reveals a strengthening interrelation among the assets during COVID-19 and Russia-Ukraine military conflict, while the wavelet quantile correlation highlights the existing diversification opportunities. To test portfolio performance, we resort to minimum variance portfolio, minimum correlation portfolio and the recently developed minimum connectedness portfolio techniques. The minimum variance portfolio is best performing portfolio with highest Sharpe ratio. In addition, considering the minimum connectedness and minimum correlation portfolios, the exposure to healthcare cryptocurrencies also improves portfolio diversification. Based on the hedging effectiveness, we show that the investment in the healthcare cryptocurrencies reduces the volatility for all the selected portfolios though currently in a limited degree. However, the investors are advised to regularly monitor their asset allocation as, with the passage of time, the strength of hedging attributes may change. Our study provides important implications for policymakers and the portfolio managers.

Yoochan Kim, Erkan Topal, Apurna Ghosh, Mohammad Waqar Ali Asad

COVID-19 and SARS are epidemics which have influenced the largest global economic crisis in recent years. This research reveals that both SARS and COVID-19 have led to fluctuations in the prices of gold and the US dollar index; however, there is no direct causal relationship be-tween COVID-19 and the price of bitcoin. The USD index saw a significant increase during the SARS outbreak, while gold prices surged during the COVID-19 pandemic. The notion that cryptocurrency will surpass the value of gold or traditional currencies seems improbable, given the lack of evidence linking bitcoin prices to COVID-19. Gold is expected to maintain its value in the long term, offering lower risk compared to other currencies.

Dhaksesh Raaj TM, Adithya Balaraman, Santhoshkumar Karthikeyan, Abinesh Ramamoorthi · 6 authors

Dating back thousands of years, agriculture has been an essential practice in the advancement of human civilization. Over time, humans realized that not everyone in the community needed to be involved in food production, leading to the emergence of specialized labour, tools, and techniques that could generate surplus food for the community. Throughout history, agriculture has continuously evolved and played a crucial role in sustaining humanity.As the population grew, the evolution of agriculture became driven by the need to feed the expanding population while maintaining food quality and traceability, preventing adulteration of products, and maximizing yield. The recent emergence of blockchain technology has brought about significant advancements that prove beneficial for the agricultural sector. The implementation of blockchain has led to benefits and revolutionary changes in agriculture, facilitating modernization and optimization in various aspects of agriculture.This research survey also deals on how blockchain technology has positively influenced different market aspects within agriculture. From the production stage to distribution and beyond, blockchain has made its impact felt, enhancing various aspects of the agricultural. Despite its promising benefits, the adoption of blockchain in agriculture is not without challenges. This study also explores these challenges and discusses the potential future developments in the field.Overall, the survey highlights how blockchain technology has become a driving force in revolutionizing agriculture, offering improved traceability, transparency, and efficiency across the entire agricultural supply chain.Research objectives1.Blockchain-Based Applications for Addressing Agricultural Challenges: Exploring Potential Solutions2.Blockchain for Supply Chain Management in Agriculture: A Promising Approach for Ensuring Food Safety and Security3.Revolutionizing Agricultural Transactions: The Power of Blockchain-Enabled Smart Contracts4.Enhancing Agriculture with Blockchain in AI, IoT, and Big Data: A Powerful Integration5.Benefits and Challenges of Blockchain Technology in Agriculture: A Comprehensive Analysis

Xiaochun Guo

Abstract COVID-19 has significantly influenced global financial markets, including Bitcoin. Recent studies have focused on investigating the first wave of the COVID-19 outbreak and accounting for market changes, which were mostly due to the pandemic. This research not only analyzes the contagion effects of COVID-19 but also considers aftermath events beyond the first pandemic wave to examine spillovers of Bitcoin. The study employs Diebold and Yilmaz’s method to explore the static and dynamic spillovers of the selected variables and identifies several major global events, including crypto-specific affairs, macroeconomic policies, and geopolitical conflicts, to explain the new market dynamics of Bitcoin using network analysis. The findings identify a few high-contagion periods related to Bitcoin. The paper also found that Bitcoin is more likely to produce extreme returns and is more connected to other markets. Contagion effects “from” and “to” other markets are asymmetrical in terms of arrival time and market response. Bitcoin is more likely to be affected by other markets in extreme situations and receives spillovers from them sooner than it transmits spillovers to others. In the context of various global events, impacts arising from developed countries are stronger. China still has some impact on cryptocurrency markets, but they are waning. Bitcoin is thus not a safe haven from the shocks of global events, but can sometimes work as a hedge or diversifier. The results offer alternative explanations for Bitcoin’s different market dynamics and enrich our understanding of Bitcoin’s safe haven, hedge, and diversifier properties within a diversified portfolio.

Imran Yousaf, Shoaib Ali, mohamed marei, Mariya Gubareva

This study investigates the static and dynamic interdependence of the Islamic cryptocurrency and metal markets using the TVP-VAR methodology. The empirical findings suggest that Islamic cryptocurrencies are the recipients of both return and volatility spillovers, while most metals act as transmitters of these spillovers. The dynamic spillovers are intensified in the COVID-19 period compared to the pre-COVID-19 period. We find that the return connectedness is short-lived lived whereas the volatility connectedness is a long-term phenomenon. Finally, we also compute the optimal weights, hedge ratios, and hedging effectiveness during COVID-19. The results suggest that investors should add Islamic cryptocurrencies to metals portfolios in order to get maximum risk-adjusted returns during the pandemic crisis. Our findings are helpful for portfolio managers and investors in making decisions regarding diversification, portfolio allocation, forecasting, and hedging.