6,145 research outputs found
Cryptocurrency functioning in the global economy
The article reveals a conceptual basis of the cryptocurrency functioning. The main types of cryptocurrencies are featured and analyzed as well as their general strengths and weaknesses.
Based on the price dynamics correlation analysis of some cryptocurrency types, a general low level
of dependence between digital assets is established. The main functions of the cryptocurrency are
formulated in the form of transformed money functions. Also, additional functions of cryptocurrencies
are defined on the basis of their innovative nature, as well as the role in the modern financial system
and world economic relations
Mutual-Excitation of Cryptocurrency Market Returns and Social Media Topics
Cryptocurrencies have recently experienced a new wave of price volatility and
interest; activity within social media communities relating to cryptocurrencies
has increased significantly. There is currently limited documented knowledge of
factors which could indicate future price movements. This paper aims to
decipher relationships between cryptocurrency price changes and topic
discussion on social media to provide, among other things, an understanding of
which topics are indicative of future price movements. To achieve this a
well-known dynamic topic modelling approach is applied to social media
communication to retrieve information about the temporal occurrence of various
topics. A Hawkes model is then applied to find interactions between topics and
cryptocurrency prices. The results show particular topics tend to precede
certain types of price movements, for example the discussion of 'risk and
investment vs trading' being indicative of price falls, the discussion of
'substantial price movements' being indicative of volatility, and the
discussion of 'fundamental cryptocurrency value' by technical communities being
indicative of price rises. The knowledge of topic relationships gained here
could be built into a real-time system, providing trading or alerting signals.Comment: 3rd International Conference on Knowledge Engineering and
Applications (ICKEA 2018) - Moscow, Russia (June 25-27 2018
Wikipedia and Digital Currencies: Interplay Between Collective Attention and Market Performance
The production and consumption of information about Bitcoin and other digital-, or 'crypto'-, currencies have grown together with their market capitalisation. However, a systematic investigation of the relationship between online attention and market dynamics, across multiple digital currencies, is still lacking. Here, we quantify the interplay between the attention towards digital currencies in Wikipedia and their market performance. We consider the entire edit history of currency-related pages, and their view history from July 2015. First, we quantify the evolution of the cryptocurrency presence in Wikipedia by analysing the editorial activity and the network of co-edited pages. We find that a small community of tightly connected editors is responsible for most of the production of information about cryptocurrencies in Wikipedia. Then, we show that a simple trading strategy informed by Wikipedia views performs better, in terms of returns on investment, than classic baseline strategies for most of the covered period. Our results contribute to the recent literature on the interplay between online information and investment markets, and we anticipate it will be of interest for researchers as well as investors
Financial Accounting Classification of Cryptocurrency
Currently, a large range of opinions exists regarding the appropriate classification and regulation of cryptocurrency. From the legal perspective, some suggest that cryptocurrency investments are too speculative. As a result of this, it is suggested that cryptocurrency should be more heavily regulated. This would be done to prevent speculators from losing vast wealth. Other legal analysts suggest that an increasing cryptocurrency regulation would have a detrimental effect on the state of cryptocurrency, and its use would cause long-term problems. From the accounting perspective, opinions vary. Some suggest an accounting classification that would make cryptocurrency cash equivalents; others suggest an accounting classification that would render cryptocurrency an intangible asset with an indefinite useful life. The “big 4” accounting firms that include Deloitte, PricewaterhouseCoopers, Ernst and Young, and KPMG recommend that cryptocurrency should be classified as an intangible asset with an indefinite useful life. However, other companies currently using cryptocurrency through the general operations of the business have decided to classify it differently. The legal perspectives and the accounting perspectives will be analyzed to determine appropriate regulations for cryptocurrency and an appropriate classification for cryptocurrency. The results will show that cryptocurrency should be classified as an intangible asset with an indefinite useful life for accounting purposes and as property for tax purposes
Cryptocurrency with a Conscience: Using Artificial Intelligence to Develop Money that Advances Human Ethical Values
Cryptocurrencies like Bitcoin are offering new avenues for economic empowerment
to individuals around the world. However, they also provide a powerful tool that
facilitates criminal activities such as human trafficking and illegal weapons sales
that cause great harm to individuals and communities. Cryptocurrency advocates
have argued that the ethical dimensions of cryptocurrency are not qualitatively new,
insofar as money has always been understood as a passive instrument that lacks
ethical values and can be used for good or ill purposes. In this paper, we challenge
such a presumption that money must be ‘value-neutral.’ Building on advances in
artificial intelligence, cryptography, and machine ethics, we argue that it is possible
to design artificially intelligent cryptocurrencies that are not ethically neutral but
which autonomously regulate their own use in a way that reflects the ethical values
of particular human beings – or even entire human societies. We propose a technological framework for such cryptocurrencies and then analyse the legal, ethical, and
economic implications of their use. Finally, we suggest that the development of
cryptocurrencies possessing ethical as well as monetary value can provide human
beings with a new economic means of positively influencing the ethos and values
of their societies
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