Unraveling the effects of google search on volatility of cryptocurrencies

Although cryptocurrencies have garnered enormous public attention in recent times, extensive fluctuations in their prices have deterred prospective investors. Due to the absence of a centralized valuation authority, the credibility of cryptocurrencies as a viable investment vehicle remains elusive. Building on attention theory, this study posits that prospective investors of cryptocurrencies are likely to search online for information before deciding whether to make a commitment. We hence investigate the effects of Google search on the return and risk of 268 cryptocurrencies over 181 trading days. Results indicate that the Google Search Volume Index (SVI) of a given cryptocurrency exerts significant and positive impact on its price and turnover

Unraveling the effects of google search on volatility of cryptocurrencies

Although cryptocurrencies have garnered enormous public attention in recent times, extensive fluctuations in their prices have deterred prospective investors. Due to the absence of a centralized valuation authority, the credibility of cryptocurrencies as a viable investment vehicle remains elusive. Building on attention theory, this study posits that prospective investors of cryptocurrencies are likely to search online for information before deciding whether to make a commitment. We hence investigate the effects of Google search on the return and risk of 268 cryptocurrencies over 181 trading days. Results indicate that the Google Search Volume Index (SVI) of a given cryptocurrency exerts significant and positive impact on its price and turnover

Effect of Twitter investor engagement on cryptocurrencies during the COVID-19 pandemic

This study aims to examine whether the prices and returns of two cryptocurrencies, Dogecoin and Ethereum, are affected by Twitter engagement following the COVID-19 pandemic. We use the autoregressive integrated moving average with explanatory variables model to integrate the effects of investor attention and engagement on Dogecoin and Ethereum returns using data from December 31, 2020, to May 12, 2021. The results provide evidence supporting the hypothesis of a strong effect of Twitter investor engagement on Dogecoin returns; however, no potential impact is identified for Ethereum. These findings add to the growing evidence regarding the effect of social media on the cryptocurrency market and have useful implications for investors and corporate investment managers concerning investment decisions and trading strategies

A Study on Cryptocurrency Investors’ Purchase Intentions: Revisiting the Brand Personality Theory

This paper aims to identify the factors affecting the investment decision of retail investors to add crypto assets to their portfolios. The personality theory and the innovation diffusion theory are used in this study to understand the characteristics that influence investors' buying intentions. The study results show that the retail investors' purchase intentions are influenced by familiarity with the asset, trust, risk and return profile of the asset class, and the perceived security of the investor. The study also examines the role of innovativeness as a moderating variable in the relationship between purchase intentions and the primary variables. The study confirms that innovativeness has a significant mediating role in the relationship between purchase intentions and trust and also in the relationship between purchase intentions and perceived security. The results indicate that innovativeness has no significant moderating impact on the relationship between purchase intentions and familiarity and also on the relationship between purchase intentions and risk and return consciousness

What the History of Linux Says About the Future of Cryptocurrencies

Since Bitcoin’s meteoric rise, hundreds of cryptocurrencies that people now publicly trade have emerged. As such, the question naturally arises: how have cryptocurrencies evolved over time? Drawing on the theory of polycentric information commons and cryptocurrencies’ historical similarities with another popular information commons (namely, Linux), we make predictions regarding what cryptocurrencies may look like in the future. Specifically, we focus on four important historical similarities: 1) support from online hacker communities, 2) pursuit of freedom, 3) criticism about features and use, and 4) proliferation of forks. We then predict that: 1) cryptocurrencies will become more pragmatic rather than ideological, 2) cryptocurrencies will become more diverse in terms of not only the underlying technology but also the intended audience, and 3) the core technology behind cryptocurrencies, called blockchain, will be successfully used beyond cryptocurrencies

Value Creation in Cryptocurrency Networks: Towards A Taxonomy of Digital Business Models for Bitcoin Companies

Cryptocurrency networks have given birth to a diversity of start-ups and attracted a huge influx of venture capital to invest in these start-ups for creating and capturing value within and between such networks. Synthesizing strategic management and information systems (IS) literature, this study advances a unified theoretical framework for identifying and investigating how cryptocurrency companies configure value through digital business models. This framework is then employed, via multiple case studies, to examine digital business models of companies within the bitcoin network. Findings suggest that companies within the bitcoin network exhibits six generic digital business models. These six digital business models are in turn driven by three modes of value configurations with their own distinct logic for value creation and mechanisms for value capturing. A key finding of this study is that value-chain and value-network driven business models commercialize their products and services for each value unit transfer, whereas commercialization for value-shop driven business models is realized through the subsidization of direct users by revenue generating entities. This study contributes to extant literature on value configurations and digital businesses models within the emerging and increasingly pervasive domain of cryptocurrency networks

Criptomonedas: riesgos, rendimientos, valor y perspectivas a futuro. Una revisión de la literatura

La presente investigación tiene como objetivo compilar información de calidad, objetiva y en español sobre las criptomonedas y sus características relevantes para todo aquel lector interesado en tener una mayor comprensión de ellas.Fil: Bortoli, Franco. Universidad Nacional de Córdoba. Facultad de Ciencias Económicas; Argentina.Fil: Costantino, Marcos. Universidad Nacional de Córdoba. Facultad de Ciencias Económicas; Argentina.Fil: Marzari, Giuliano. Universidad Nacional de Córdoba. Facultad de Ciencias Económicas; Argentina.Fil: Negritto, Ramiro Gabriel. Universidad Nacional de Córdoba. Facultad de Ciencias Económicas; Argentina

Machine Learning-Driven Decision Making based on Financial Time Series

L'abstract è presente nell'allegato / the abstract is in the attachmen

Екофізика криптовалютних крахів: систематичний огляд

Cryptocurrencies refer to a type of digital asset that uses distributed ledger, or blockchain technology to enable a secure transaction. Like other financial assets, they show signs of complex systems built from a large number of nonlinearly interacting constituents, which exhibits collective behavior and, due to an exchange of energy or information with the environment, can easily modify its internal structure and patterns of activity. We review the econophysics analysis methods and models adopted in or invented for financial time series and their subtle properties, which are applicable to time series in other disciplines. Quantitative measures of complexity have been proposed, classified, and adapted to the cryptocurrency market. Their behavior in the face of critical events and known cryptocurrency market crashes has been analyzed. It has been shown that most of these measures behave characteristically in the periods preceding the critical event. Therefore, it is possible to build indicators-precursors of crisis phenomena in the cryptocurrency market.Криптовалюти відносяться до типу цифрових активів, які використовують технологію розподіленого реєстру, або блокчейн, для забезпечення безпечного проведення транзакцій. Як і інші фінансові активи, вони мають ознаки складних систем, побудованих з великої кількості нелінійно взаємодіючих складових, які демонструють колективну поведінку і завдяки обміну енергією або інформацією з навколишнім середовищем можуть легко змінювати свою внутрішню структуру і моделі діяльності. Ми розглядаємо методи та моделі еконофізичного аналізу, прийняті або винайдені для фінансових часових рядів, а також їх тонкі властивості, які можна застосувати до часових рядів в інших дисциплінах. Запропоновано, класифіковано та адаптовано до ринку криптовалют кількісні міри складності. Проаналізовано їх поведінку в умовах критичних подій та відомих обвалів криптовалютного ринку. Показано, що більшість з цих показників характерно поводять себе в періоди, що передують критичній події. Тому є можливість побудови індикаторів-передвісників кризових явищ на ринку криптовалют

Virtual Currencies Bitcoin & What Now After Liberty Reserve, Silk Road, and Mt. Gox?

During 2013, the U.S. Treasury Department evoked the first use of the 2001 Patriot Act to exclude virtual currency provider Liberty Reserve from the U.S. financial system. This article will discuss: the regulation of virtual currencies, cybercrimes and payment systems, darknets, Tor and the “deep web,” Bitcoin; Liberty Reserve, Silk Road, and Mt. Gox. Virtual currencies have quickly become a reality, gaining significant traction in a very short period of time, and are evolving rapidly