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Identification of the Variables Effecting the Value of the Cryptocurrency

Year 2021, Volume: 6 Issue: 1, 27 - 34, 20.02.2021
https://doi.org/10.23834/isrjournal.842649

Abstract

Technically cryptocurrencies often have Distributed Ledger Technology (DLT) and encryption based on infrastructure called blockchain that allows all nodes to verify the validity of a transaction. In terms of monetary theory, cryptocurrencies are currently the most developed virtual currencies that cannot perform all the basic functions of money such as the account, exchange and capital accumulation.The price of cryptocurrency is based on supply and demand, without an intervention of a central authority. Dynamics that affect the value of cryptocurrencies can be classified as internal and external variables. The internal dynamics of cryptocurrencies have been examined under the headings of economic infrastructure and technological infrastructure. External factors that are effective in determining the value are observed as popularity, security, volume, inflation, tax, crypto exchange accidents, perception, speculations / manipulations and news.

References

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  • Arıkan, N.İ., (2020). The Ecosystem of Cryptocurrencıes in terms of Monetary Theory (Doctora Thesis). T.C. Inonu University.
  • Auer, R & Claessens, S., (2018). Regulating Cryptocurrencies: Assessing Marketreactions. BIS.
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  • Baur, D. G., Hong, K., ve Lee, A. D. (2018b) “Bitcoin: Medium of exchange or peculative assets?”, Journal of International Financial Markets, Institutions and Money, 54, 177–189.
  • Bech, M. L., & Garratt, R. (2017). “Central Bank Cryptocurrencies”. BIS Quarterly Review, September, 55-70.
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  • BIS. (2018). Cryptocurrencies: Looking Beyond the Hype. Annual Economic Report, 91–114.
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  • BIS. (2020). International Banking And Financial Market Developments. BIS Quarterly Review, March.
  • Cihangir, M , Baysa, E , Söker, F , Eroğlu, S . (2019). Trend of Participation in the Bitcoın Market: A Survey based Evaluatıon on Different University Students. Eurasian Journal of Researches in Social and Economics (EJRSE), 6 (4) , 505-522.
  • Corbet, S., Meegan, A., Larkin, C., Lucey, B., & Yarovaya, L. (2018). Exploring the dynamic relationships between cryptocurrencies and other financial assets. Economics Letters, 165, 28-34.
  • Demir, E., Gözgör, G., Lau, C. K. M., & Vigne, S. A. (2018). "Does Economic Policy Uncertainty Predict The Bitcoin Returns? An Empirical Investigation". Finance Research Letters, 26, 145-149.
  • Dulupçu, M. A., Yiğit, M., & Genç, A. G. (2017). The Rising Face of the Digital Economy: The Analysıs of Relationship Between the Value of Bitcon And Its Popularıty. Suleyman Demirel University The Journal of Faculty of Economics and Administrative Sciences, 22, 2241–2259.
  • Dyhrberg, A. (2016a). Bitcoin, gold and the dollar - a GARCH volatility analysis. Finance Research Letters, 16, 85-92.
  • Dyhrberg, A. H. (2016b). "Hedging Capabilities of Bitcoin. Is It the Virtual Gold? Finance Research Letters", 16, 139-144.
  • Eichengreen, B. (2019). “From Commodity to Fiat and Now to Crypto: What Does History Tell Us?”. Nber Working Papers (w25426). National Bureau of Economic Research.
  • Fama, E. F. (1965). "Portfolio Analysis in a Stable Paretian Market". Management Science, 11(3), 404-419.
  • Fama, E. F., & French, K. R. (2017). International tests of a five-factor asset pricing model. Journal of Financial Economics, 123(3), 441-463.
  • Gandal, N., Hamrick, J. T., Moore, T., ve Oberman, T. (2018). “Price manipulation in the Bitcoin ecosystem”. Journal of Monetary Economics, 95, 86-96
  • Garcia D, Tessone C, Mavrodiev P, Perony N (2014). The digital traces of bubbles: feedback cycles between socio-economic signals in the Bitcoin economy. Journal of the Royal Society Interface 11: 2014623.
  • Garratt, R., & Wallace, N. (2018). “Bitcoin 1, Bitcoin 2,.: An Experiment in Privately Issued Outside Monies”. Economic Inquiry, 56(3), 1887-1897.
  • Güleç, T. C. (2018). Financial Analyses Regarding the Current State of Blockchain Based Crypto Currencies and Their Future (Doctora thesis). T.C. Mani̇sa Celal Bayar University.
  • Herian, R. (2017). Blockchain and the (Re) Imagining of Trusts Jurisprudence. Strategic Change, 26(5), 453-460.
  • İslatince, H. (2016). Money Supply and Inflation Relationship: A Causality Analysis for Turkey (1988-2016). Anadolu University Journal of Social Sciences, 43–56.
  • Jackson, O. (2018). “US or Swiss Approach for EU Crypto Regulation?”. International Financial Law Review, Feb 22.
  • Kshetri, N. & Loukoianova, E. (2019). "Blockchain Adoption in Supply Chain Networks in Asia". IT Professional, 21(1), 11-15.
  • Lemieux, V. L. (2016). “Trusting Records: Is Blockchain Technology the Answer?”. Records Management Journal, 26(2), 110-139.
  • Nguyen, C. P., Christophe, S. & Nguyen, T. (2020). Google search and stock returns in emerging markets, Borsa Istanbul Review, https://doi.org/10.1016/j.bir.2019.07.001.
  • Selmi, R., Mensi, W., Hammoudeh, S., & Bouoiyour, J. (2018). "Is Bitcoin a Hedge, a Safe Haven or a Diversifier for Oil Price Movements? A Comparison with Gold". Energy Economics, 74, 787-801.
  • Shahzad, S. J. H., Bouri, E., Roubaud, D., Kristoufek, L., & Lucey, B. (2019). "Is Bitcoin a Better Safe-Haven Investment than Gold and Commodities?" International Review of Financial Analysis. 63,322-330.
  • Vovchenko, G., Tishchenko, N., Epifanova, V., & Gontmacher, B. (2017). Electronic Currency: The Potential Risks to National Security and Methods to Minimize Them. European Research Studies Journal, 20(1), 36-48.
  • Wu, S., Tong, M., Yang, Z., & Derbali, A. (2019). "Does Gold or Bitcoin Hedge Economic Policy Uncertainty?". Finance Research Letters, 31, 171-178

Kripto Paranın Değerini Etkileyen Değişkenlerin İncelenmesi

Year 2021, Volume: 6 Issue: 1, 27 - 34, 20.02.2021
https://doi.org/10.23834/isrjournal.842649

Abstract

Thanks

Merve Engin Kurt'un çeviride değerli katkıları olmuştur.

References

  • Alnıaçık, B. (2019). "An Analysis of Current Status of Crypto Currencies Over the World and Turkey", Research Studies Anatolia Journal, 2019 (2), 21–30.
  • Arıkan, N.İ., (2020). The Ecosystem of Cryptocurrencıes in terms of Monetary Theory (Doctora Thesis). T.C. Inonu University.
  • Auer, R & Claessens, S., (2018). Regulating Cryptocurrencies: Assessing Marketreactions. BIS.
  • Baek, C., & Elbeck, M. (2015). “Bitcoins as an Investment or Speculative Vehicle? A First Look”. Applied Economics Letters, 22(1), 30-34.
  • Baur, D., Dimpfl, T., & Kuck, K. (2018a). Bitcoin, gold and the US dollar - A replication and extension. Finance Research Letters, 25 (October 2017),103-110.
  • Baur, D. G., Hong, K., ve Lee, A. D. (2018b) “Bitcoin: Medium of exchange or peculative assets?”, Journal of International Financial Markets, Institutions and Money, 54, 177–189.
  • Bech, M. L., & Garratt, R. (2017). “Central Bank Cryptocurrencies”. BIS Quarterly Review, September, 55-70.
  • Birch, D. (2017). Before Babylon, Beyond Bitcoin: From Money that We Understand to Money that Understands Us, [E-book], London Publishing Partnership.
  • BIS. (2018). Cryptocurrencies: Looking Beyond the Hype. Annual Economic Report, 91–114.
  • Cheah, E., & Fry, J. (2015). Speculative bubbles in bitcoin markets? An empirical investigation into the fundamental value of bitcoin. Economics Letters, 130, 32-36.
  • BIS. (2020). International Banking And Financial Market Developments. BIS Quarterly Review, March.
  • Cihangir, M , Baysa, E , Söker, F , Eroğlu, S . (2019). Trend of Participation in the Bitcoın Market: A Survey based Evaluatıon on Different University Students. Eurasian Journal of Researches in Social and Economics (EJRSE), 6 (4) , 505-522.
  • Corbet, S., Meegan, A., Larkin, C., Lucey, B., & Yarovaya, L. (2018). Exploring the dynamic relationships between cryptocurrencies and other financial assets. Economics Letters, 165, 28-34.
  • Demir, E., Gözgör, G., Lau, C. K. M., & Vigne, S. A. (2018). "Does Economic Policy Uncertainty Predict The Bitcoin Returns? An Empirical Investigation". Finance Research Letters, 26, 145-149.
  • Dulupçu, M. A., Yiğit, M., & Genç, A. G. (2017). The Rising Face of the Digital Economy: The Analysıs of Relationship Between the Value of Bitcon And Its Popularıty. Suleyman Demirel University The Journal of Faculty of Economics and Administrative Sciences, 22, 2241–2259.
  • Dyhrberg, A. (2016a). Bitcoin, gold and the dollar - a GARCH volatility analysis. Finance Research Letters, 16, 85-92.
  • Dyhrberg, A. H. (2016b). "Hedging Capabilities of Bitcoin. Is It the Virtual Gold? Finance Research Letters", 16, 139-144.
  • Eichengreen, B. (2019). “From Commodity to Fiat and Now to Crypto: What Does History Tell Us?”. Nber Working Papers (w25426). National Bureau of Economic Research.
  • Fama, E. F. (1965). "Portfolio Analysis in a Stable Paretian Market". Management Science, 11(3), 404-419.
  • Fama, E. F., & French, K. R. (2017). International tests of a five-factor asset pricing model. Journal of Financial Economics, 123(3), 441-463.
  • Gandal, N., Hamrick, J. T., Moore, T., ve Oberman, T. (2018). “Price manipulation in the Bitcoin ecosystem”. Journal of Monetary Economics, 95, 86-96
  • Garcia D, Tessone C, Mavrodiev P, Perony N (2014). The digital traces of bubbles: feedback cycles between socio-economic signals in the Bitcoin economy. Journal of the Royal Society Interface 11: 2014623.
  • Garratt, R., & Wallace, N. (2018). “Bitcoin 1, Bitcoin 2,.: An Experiment in Privately Issued Outside Monies”. Economic Inquiry, 56(3), 1887-1897.
  • Güleç, T. C. (2018). Financial Analyses Regarding the Current State of Blockchain Based Crypto Currencies and Their Future (Doctora thesis). T.C. Mani̇sa Celal Bayar University.
  • Herian, R. (2017). Blockchain and the (Re) Imagining of Trusts Jurisprudence. Strategic Change, 26(5), 453-460.
  • İslatince, H. (2016). Money Supply and Inflation Relationship: A Causality Analysis for Turkey (1988-2016). Anadolu University Journal of Social Sciences, 43–56.
  • Jackson, O. (2018). “US or Swiss Approach for EU Crypto Regulation?”. International Financial Law Review, Feb 22.
  • Kshetri, N. & Loukoianova, E. (2019). "Blockchain Adoption in Supply Chain Networks in Asia". IT Professional, 21(1), 11-15.
  • Lemieux, V. L. (2016). “Trusting Records: Is Blockchain Technology the Answer?”. Records Management Journal, 26(2), 110-139.
  • Nguyen, C. P., Christophe, S. & Nguyen, T. (2020). Google search and stock returns in emerging markets, Borsa Istanbul Review, https://doi.org/10.1016/j.bir.2019.07.001.
  • Selmi, R., Mensi, W., Hammoudeh, S., & Bouoiyour, J. (2018). "Is Bitcoin a Hedge, a Safe Haven or a Diversifier for Oil Price Movements? A Comparison with Gold". Energy Economics, 74, 787-801.
  • Shahzad, S. J. H., Bouri, E., Roubaud, D., Kristoufek, L., & Lucey, B. (2019). "Is Bitcoin a Better Safe-Haven Investment than Gold and Commodities?" International Review of Financial Analysis. 63,322-330.
  • Vovchenko, G., Tishchenko, N., Epifanova, V., & Gontmacher, B. (2017). Electronic Currency: The Potential Risks to National Security and Methods to Minimize Them. European Research Studies Journal, 20(1), 36-48.
  • Wu, S., Tong, M., Yang, Z., & Derbali, A. (2019). "Does Gold or Bitcoin Hedge Economic Policy Uncertainty?". Finance Research Letters, 31, 171-178
There are 34 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Necip İhsan Arıkan 0000-0003-1389-187X

Publication Date February 20, 2021
Submission Date December 18, 2020
Published in Issue Year 2021 Volume: 6 Issue: 1

Cite

APA Arıkan, N. İ. (2021). Identification of the Variables Effecting the Value of the Cryptocurrency. The Journal of International Scientific Researches, 6(1), 27-34. https://doi.org/10.23834/isrjournal.842649