Top Research Papers on Cryptocurrency

Since its launch in 2009 much has been written about Bitcoin, cryptocurrencies, and blockchains. While the discussions initially took place mostly on blogs and other popular media, we now are witnessing the emergence of a growing body of rigorous academic research on these topics. By the nature of the phenomenon analyzed, this research spans many academic disciplines including macroeconomics, law and economics, and computer science. This survey focuses on the microeconomics of crypto-currencies themselves. What drives their supply, demand, trading price, and competition amongst them? This lite...

It is shown that token retradeability mitigates this risk of breakdown on younger platforms by harnessing user optimism but worsens this fragility when sentiment trading by speculators crowds out users.

We model cryptocurrencies as utility tokens used by a decentralized digital platform to facilitate transactions between users of certain goods or services. The network effect governing user participation, in conjunction with the nonneutrality of the token price, can cause the token market to break down. We show that token retradeability mitigates this risk of breakdown on younger platforms by harnessing user optimism but worsens this fragility when sentiment trading by speculators crowds out users. Elastic token issuance mitigates this fragility, but strategic attacks by miners exacerbate it b...

The authors propose a collection of viewpoints on crypto art from different actors of the system: artists, collectors, galleries, art historians and data scientists.

This paper focuses on multi-currency wallets review exploring on features like supported currencies, anonymity, cost, platform support, key management, wallet recovery methods and fiat currencies supported.

It is suggested that this index captures uncertainty beyond Bitcoin, and can be used for academic, policy, and practice-driven research.

• Bitcoin's excess volatility requires a crypto safe haven for investors. • Hypothesize that stablecoins provide stability and a safe haven for Bitcoin investors. • Stablecoins are a safe haven with respect to Bitcoin but not stable at all times. The design of Bitcoin is closely related to gold which has led to the idea that Bitcoin has gold-like features such as being a store of value and a safe haven. However, given Bitcoin's extreme volatility investors may rather need a safe haven against Bitcoin. We hypothesize that stablecoins provide such a safe haven and analyze high-frequency price ch...

This paper examines the dynamic connectedness of return- and volatility spillovers among cryptocurrency index (CRIX), Gold, and uncertainty measures. Apart from traditional uncertainty measures, we also consider two novel uncertainty measures: Cryptocurrency Policy Uncertainty and Cryptocurrency Price Uncertainty indices. We observe that cryptocurrency policy uncertainty is the main transmitter of the return spillovers to other variables. In addition, Gold is a net receiver of both the return and the volatility spillovers. These results are valid under bearish, bullish, and normal market condi...

It is found that higher volatility, trading volume and transactions are positively associated with the presence of bubbles across cryptocurrencies, and regarding the uncertainty variables, the VIX-index consistently demonstrates negative relationships with bubble occurrence, while the EPU-index mostly exhibits positive associations with bubbles.

This paper identifies over 1,500 scam domains and over 300 fake apps, by collecting existing reports and using typosquatting generation techniques, and characterize the impacts of such scams, revealing that they have incurred financial loss of 520k US dollars at least.

We examine the relationship between investor attention, and measures of uncertainty, with the market dynamics of Bitcoin and other cryptocurrencies. We find that increases in investor attention are associated with higher returns, more volatility, and greater illiquidity in cryptocurrency markets. In contrast, cryptocurrency uncertainty (UCRY) and financial market uncertainty (VIX) are also positively related to volatility and illiquidity but have a negative contemporaneous relationship with returns. The identified relationships are accentuated during the COVID-pandemic, and are robust to diffe...

A scoping review of academic research and grey literature on cryptocurrency fraud and an expert consensus exercise ranked pump-and-dump schemes and ransomware as the most profitable and feasible threats, though pump- and-dumps were perceived as the least harmful type of fraud.

This paper provides a comprehensive survey of cryptocurrency Trading research, by covering 146 research papers on various aspects of cryptocurrency trading (e.g., cryptocurrency trading systems, bubble and extreme condition, prediction of volatility and return, crypto-assets portfolio construction and crypto- assets, technical trading and others).

Bitcoin is presented which illuminates some of the recent events and movements that could influence whether bitcoin contributes to a shift in economic paradigms and could change the way internet connected global markets interact with each other.

In order to move beyond mean-based connectedness measures in the cryptocurrency market and capture connectedness under extreme events, this paper applies quantile-based connectedness measures based on the variance decomposition of a quantile vector autoregression model. Based on the daily price data of seven leading cryptocurrencies from August 8, 2015 to December 31, 2020, the results show that the connectedness measures in the left and right tails are much higher than those in the mean and median of the conditional distribution. This suggests that return connectedness strengthens with shock ...

The Foundation platform is mapped, identifying over 48,000 artworks through the associated NFTs listed by over 15,000 artists, allowing us to characterize the patterns that govern the networks that shape artistic success and to better understand the emerging NFT ecosystem.

This paper investigates the efficacy of low-frequency transactions-based liquidity measures to describe actual (high-frequency) liquidity. We show that the Corwin and Schultz (2012) and Abdi and Ranaldo (2017) estimators outperform other measures in describing time-series variations, irrespective of the observation frequency, trading venue, high-frequency liquidity benchmark, and cryptocurrency. Both measures perform well during high and low return, volatility and volume periods. The Kyle and Obizhaeva (2016) estimator and the Amihud (2002) illiquidity ratio outperform when estimating liquidit...

The study quantifies the spillover effects in the cryptocurrency market using a rolling-window Bayesian Vector Autoregressive Model. The present study offers a better understanding of the interconnectedness and the shock transmission in the cryptocurrency market, as it quantifies spillover risk at the pairwise directional level, offering a dynamic understanding of the shock fluctuation within the market which in turn uncovers periods of risk integration. In addition, the study investigates the determinants of the spillover shocks in the cryptocurrency market, revealing the increasing connectio...

The role of legal, criminal, financial, and social determinants of the adoption of Bitcoin infrastructure are investigated and support is found for the view that bitcoin adoption is also partly driven by cryptocurrencies’ usefulness in engaging in illicit trade is found.

The extent to which herding and feedback trading behaviors drive price dynamics across nine major cryptocurrencies is examined, and the observed nature of the risk-return tradeoffs for each of the authors' sampled cryptocurrencies is shed.