Emergence Of Cryptocurrencies Research Articles

Why don’t You Want My Money: A Study of the Acceptance of Cryptocurrencies in Online Cannabis Markets

ABSTRACT Drug trafficking is a crime that is constantly renewing and adapting to new technological advances. With the emergence of cryptocurrencies, many offenders have incorporated this technology in the development of their criminal activities. It is usually assumed that characteristics of this virtual currency such as its security and anonymity could favor criminality. This paper studies the acceptance of cryptocurrencies in online drug markets in Canada. The results show that most marketplaces refuse cryptocurrency as a form of payment. Furthermore, they suggest that this acceptance is based on criteria of business improvement and customer acquisition, with the market’s need to take advantage of the cryptocurrency’s features being less important. Merchants do not consider their use necessary to protect the development of their criminal activity and therefore most of them do not intend to accept them in the future. The extended TAM has shown to be valuable in elucidating conclusions regarding the acceptance of cryptocurrency in this area.

Appraising the application of cryptocurrency technologies in the Nigerian built environment: stakeholders’ perspective

PurposeTwenty-first century digitalisation birthed new methods of payment systems like the emergence of cryptocurrencies. Cryptocurrency technologies have been identified as drivers for crypto-smart contracts and procurements. Studies regarding the application of cryptocurrency technologies in the Nigerian built environment industry are uncommon. Therefore, this paper aims to explore the relevance of cryptocurrency technologies to the sector, examine the perceived barriers that may hinder cryptocurrency technologies implementation and propose measures to promote the applications.Design/methodology/approachThe research conducted a virtual interview across Abuja and Lagos cities to appraise stakeholders’ perceptions. The interviewees were requested to proffer answers to the research questions. The study conducted 25 semi-structured interviews with knowledgeable stakeholders. The data were analysed, and findings were reported in themes.FindingsEnhanced the era of smart contracts, increased liquidity for small and medium-sized enterprises (SMEs) and new openings to raise more funds for capital-intensive construction projects emerged as the advantages where cryptocurrency technologies can benefit the sector if allowed to operate. Cryptocurrency technology applications are not without some anticipated hindrances. Risk of loss of investment/price instability, lack of intrinsic value, money laundering, attracting speculators, criminal activities/security issues, lack of clarity and awareness and lack of skills emerged as the frequently anticipated barriers that may hinder cryptocurrency technologies applications.Research limitations/implicationsThe study is limited to cryptocurrency technology applications in Nigeria’s built environment, and a qualitative method has been adopted.Originality/valueBesides uncovering barriers hindering cryptocurrency technology usage via an unexplored mechanism, the study is one of the few studies to proffer measures to improve cryptocurrency technology usage in the built environment.

The Interplay Between Digital Artifacts and Value Creation in the Ecosystem Design

Since Satoshi Nakamoto's first publication of the Bitcoin whitepaper in 2008, blockchain based technologies has gradually permeated various aspects of our lives. From the emergence of cryptocurrencies like Bitcoin to the development of platforms such as Ethereum, and the rise of phenomena like NFTs and Fan Tokens, the impacts of this technology has been diverse. While speculation surrounding these innovations persists, there exist successful use cases that have breathed new life into industries and enhanced customer interaction with established brands. One such domain where this is evident is the sports industry. Historically, sports teams, particularly football clubs, have sought avenues to capitalize on their fan base, aiming to diversify revenue streams. The advent of Fan Tokens has facilitated this endeavour, allowing teams to monetize fan engagement effectively. Consequently, an exploratory study comprising multiple case analyses was undertaken to examine how digital artifacts, exemplified by Fan Tokens, contribute to value creation within an ecosystem, fostering innovation and monetization for sports enterprises. The findings of this study elucidate the correlation between the characteristics of digital artifacts and the sources of value creation within an ecosystem. Furthermore, they underscore how these characteristics catalyse the formation of such ecosystems, thus propelling innovation and revenue generation within the sports industry.

NEW AML TOOLS: ANALYZING ETHEREUM CRYPTOCURRENCY TRANSACTIONS USING A BAYESIAN CLASSIFIER

The emergence of cryptocurrencies as a form of digital payments has contributed to the emergence of numerous opportunities for the implementation of effective and efficient financial transactions, however, new fraud and money laundering schemes have emerged, as the anonymity and decentralization inherent in cryptocurrencies complicate the process of monitoring transactions and control by governments and law enforcement agencies. This study aims to develop a mechanism for analyzing transactions in the Ethereum cryptocurrency using a Bayesian classifier to identify potentially suspicious transactions that may be related to terrorist financing and money laundering. The Bayesian approach makes it possible to consider the probabilistic characteristics of transactions and their interrelationships to increase the accuracy of detecting anomalous and potentially illegal transactions. For the analysis, data on transactions of the Ethereum currency from June 2020 to December 2022 were taken. The developed mechanism involves determining a set of characteristics of transaction graph nodes that identify the potential for their use in illegal financial transactions and forming intervals of their permissible values. The article presents cryptocurrency transactions as an oriented graph, with the nodes being the entities conducting transactions and the arcs being the transactions between the nodes. In assessing the risks of using cryptocurrencies in money laundering, the number/amount of transactions to and from the respective node, the balance of these transactions (absolute value), and the type of node were considered. The analysis showed that among the 100 largest nodes in the network, 11 were identified as having a «critical» risk level, and the most closely connected nodes were identified. This methodology can be used not only to analyze the Ethereum cryptocurrency but also for other cryptocurrencies and similar networks.

Theoretical and legal issues of defining digital currencies as an administrative and legal phenomenon

The last decade has seen a rapid growth of innovations in the field of IT technologies, one of the consequences of which was a change in the approach to the payment system – for the first time in human history, electronic records rather than real funds were provided in exchange for goods and services, which made it possible to represent money and currencies in a virtual form. The emergence of cryptocurrencies and the development of electronic payment systems have created the basis for the emergence of digital currencies, a technological innovation that performs the exchange functions of money, but operates outside the modern banking sector and has developed outside the supervision of monetary regulators. Since the first digital currency, bitcoin, was created, the digital currency market has been growing rapidly and has already become significant for the global economy. Currently, digital currencies are widely used in the economic and legal environment of Ukraine. Despite certain attempts by the national legislator to regulate relations in the field of digital currencies, a number of aspects remain unaddressed by the legislator, there is legal uncertainty regarding activities related to digital currencies, there is no regulation of the procedure for the activities of entities providing services in the field of digital currencies, and, most importantly, the terminology for defining the definition of digital currencies in the legal plane is not regulated at the doctrinal level. This is important in the context of the development of administrative law and the related phenomenon of "digital currency". The purpose of the paper is to study the theoretical and legal issues of defining digital currencies as an administrative and legal phenomenon. The paper examines the definition of the category «digital currency» – a digital object intended for payment functions contained in the form of a set of electronic data (digital code or designation) in an information network operating on the basis of distributed ledger technology, the circulation of which is regulated by administrative law. The analysis has shown that there are numerous approaches to understanding legal relations in the field of digital currency circulation. These relations are based on the principles of discretion and equality of the parties with a mandatory method of legal regulation. Therefore, administrative legal relations in the field of digital currencies are social relations regulated by administrative law regarding the possession, use and disposal of digital currencies in accordance with the rules of administrative law.

Characteristics of proliferating cryptocurrencies: a comparative study between stable and non-stable cryptocurrencies

ABSTRACT The emergence of cryptocurrencies has caught the attention worldwide. Some parties have considered issuing cryptocurrencies an excellent opportunity to raise capital and other businesses. However, the factors that foster the proliferation of cryptocurrency are not fully explored. This paper documented a comparative case study of USDT (a successful stablecoin) and EOS (a successful non-stable cryptocurrency). Based on our findings and previous literature, we suggested a Technology-Institution-Market (TIM) framework for cryptocurrency proliferation. We also elaborated on previous FinTech product development and adoption theories and provided some practical implications for cryptocurrency investors, issuers and regulators.

Forecasting cryptocurrency returns using classical statistical and deep learning techniques

The emergence of cryptocurrencies has generated enthusiasm and concern in the modern global economy. However, their high volatility, erratic price fluctuations, and tendency to exhibit price bubbles have made investors cautious about investing in them. Consequently, it is essential to develop methods and models to forecast cryptocurrency returns to benefit investors, traders, and the scientific community. Despite the considerable volume of research on Bitcoin price forecasting, other cryptocurrencies have received little attention in academic literature. Additionally, the current body of literature on predicting cryptocurrency prices or returns emphasizes the use of in-sample methodologies. However, this method is susceptible to overfitting. To address these gaps in the literature, this study employs autoregressive moving average (ARMA), generalized autoregressive conditional heteroskedasticity (GARCH), exponential generalized autoregressive conditional heteroskedasticity (EGARCH), and long short-term memory (LSTM) deep learning neural networks to forecast returns for the ten most actively traded digital currencies: Bitcoin, Ethereum, Ripple, Chainlink, Litecoin, Cardano, Ethereum Classic, Bitcoin Cash, Tether, and Binance Coin. To assess the accuracy of the two models, this study utilizes an out-of-sample method with data gathered sequentially from November 9, 2017, to September 18, 2022. The results indicate that all models exhibit high accuracy, as evidenced by their low root mean square error (RMSE), mean absolute error (MAE), and mean squared error (MSE) values. Meanwhile, the hybrid EGARCH-LSTM or GARCH-LSTM models demonstrate slightly better accuracy compared with the other models. The findings are valuable for investors, traders, and researchers involved in cryptocurrency forecasting.

Ponzi Schemes and Cryptocurrency: How Do They Work Together?

This conceptual paper delves into the intriguing intersection between Ponzi schemes and cryptocurrency, shedding light on the unique dynamics, challenges, and implications arising from their convergence. While Ponzi schemes have long been recognized as fraudulent investment schemes, the emergence of cryptocurrency has introduced novel avenues for perpetrating such schemes. This paper examines the underlying mechanisms that facilitate the fusion of Ponzi schemes and cryptocurrency. It explores the emergence, characteristics, impact, and regulatory challenges. This paper contributes to a deeper understanding of the complex dynamics at play and provides insights into safeguarding investors and promoting the integrity of cryptocurrency markets.

ПЕРСПЕКТИВЫ ВНЕДРЕНИЯ И ИСПОЛЬЗОВАНИЯ ЦИФРОВЫХ ВАЛЮТ ЦЕНТРАЛЬНЫХ БАНКОВ

The global economy is constantly changing. The spread of "digital" technologies sooner or later had to affect the evolution of money. If the emergence of cryptocurrencies is considered as an attempt by individuals and companies to get away from state payment systems, then digital currencies of central banks or Central securities are an asymmetric response of the state to the development of cryptocurrencies. The purpose of the study is to identify trends in the introduction and use of digital currencies by central banks. The object of research: digital currencies. Subject of research: digital currencies of central banks. Methodology: Using the method of systematic analysis of scientific sources and regulatory documents regulating the scope of digital currencies, the trends of digital currencies and the transformation of the payment system, which are relevant today, were investigated. Result: It should be noted that the synchronous decision of almost all Central Banks in the world to accelerate the introduction of central securities for domestic and international settlements confirms the approach according to which, when analyzing relations between countries, more attention should be paid to real economic ties and processes, rather than declared statements.

A Literature Survey on Transaction and Phishing URL Fraud Detection System

The literature survey provides a comprehensive overview of the complexities surrounding cryptocurrencies, focusing on fraud detection and regulation within the global financial system. It traces the historical evolution of monetary systems, the emergence of cryptocurrencies, and regulatory approaches. Significant findings include the application of machine learning algorithms like LGBM and random forest in Ethereum fraud detection, and the effectiveness of unsupervised learning for anomaly mining in Bitcoin transactions. Novel frameworks for fraud detection through ensemble stacking models are also highlighted. The survey underscores the need for effective approaches to combat fraudulent activities within blockchain platforms, such as Ponzi schemes and phishing scams. Proposed solutions utilize methodologies like graph neural networks and ensemble learning, exhibiting high accuracy. Regulatory measures, classification technique refinement, and future research directions are emphasized to enhance fraud detection models. Overall, the survey illuminates the potential impact of cryptocurrencies on the global financial system, the challenges of unregulated circulation, and promising advancements in fraud detection and regulatory efforts within the digital economy

Comparative analysis of machine learning techniques for cryptocurrency price prediction

The emergence of cryptocurrencies has revolutionized the concept of digital currencies and attracted significant attention from financial markets. Predicting the price dynamics of cryptocurrencies is crucial but challenging due to their highly volatile and non-linear nature. This study compares the performance of various models in predicting cryptocurrency prices using three datasets: Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH). The models analyzed include Moving Average (MA), Logistic Regression (LR), Autoregressive Integrated Moving Average (ARIMA), Long Short-Term Memory (LSTM), and Convolutional Neural Network-Long Short-Term Memory (CNN-LSTM). The objective is to uncover underlying patterns in cryptocurrency price movements and identify the most accurate and reliable approach for predicting future prices. Through the analysis, it could be observed that MA, LR, and ARIMA models struggle to capture the actual trend accurately. In contrast, LSTM and CNN-LSTM models demonstrate strong fit to the actual price trend, with CNN-LSTM exhibiting a higher level of granularity in its predictions. Results suggest that deep learning architectures, particularly CNN-LSTM, show promise in capturing the complex dynamics of cryptocurrency prices. These findings contribute to the development of improved methodologies for cryptocurrency price prediction.

Prospects for the use of cryptocurrencies in international maritime logistics

This article analyzes the trends in the development of cryptocurrencies and considers the main trends in their use in international water logistics. The use of cryptocurrencies in recent years has become one of the responses to the opportunities and challenges of the modern global economy, as nowadays the global digitalization being introduced everywhere affects the development of almost all spheres of the economy. As a result of digitalization, new markets, forms of communication, goods and services have emerged. Active digitalization has led to the formation of a digital profile of a person, the requests of participants in the global economy to form alternative savings instruments, not correlated with the dynamics of traditional financial markets, new money equivalents that meet the current requirements of the digital economy and are more independent of the actions of the issuing countries. The emergence of cryptocurrencies was an attempt at a technological response to the emerging problems and challenges. The main purpose of this study is to study the role and prospects of using cryptocurrencies in modern international water logistics.

Enhancing Financial Transaction Security With Blockchain Technology

Background: Cryptocurrency represents a modern digital payment system that operates independently of traditional banking institutions. Instead of physical currency, cryptocurrencies exist as digital entries within a virtual ledger, facilitating transactions globally without geographical constraints. The emergence of cryptocurrency has revolutionized how transactions are conduct-ed, with a growing number of businesses—over 2,300 in the US alone—accepting Bitcoin and other digital assets for various purposes, including in-vestments and operational transactions. This shift underscores the potential of cryptocurrencies and blockchain technology to reshape financial and opera-tional practices across sectors. Methodology: This research explores the integration of blockchain technolo-gy and cryptographic techniques in enhancing digital transaction security and operational efficiency. Specifically, we investigate the application of blockchain in sectors such as real estate, where it has been used to develop smarter con-tracts. Our study employs cryptographic hash functions to protect sensitive information. BLAKE2b-512 is utilized for hashing user identities, providing robust security due to its resistance to reverse engineering. Additionally, MD5 is used for hashing passwords, ensuring that even in the event of a database breach, user credentials remain secure. Findings: The adoption of blockchain and cryptographic hashing techniques has shown significant improvements in transaction security and data protec-tion. By storing hashed values instead of plaintext information, the risk of sen-sitive data being compromised is substantially reduced. Our findings highlight that while BLAKE2b-512 offers strong protection for user identities, the use of MD5 for password hashing presents a layered approach to safeguarding sensi-tive information. The study demonstrates that integrating these technologies not only enhances security but also fosters trust and efficiency in digital trans-actions and business operations.

DEVELOPMENT OF THE GLOBAL CRYPTOCURRENCY MARKET

<p>Cryptocurrencies represent a new form of property that exists only on the Internet. The first cryptocurrency to appear on the global market was Bitcoin, and its appearance is linked to the first financial crisis in 2008. The market capitalization of Bitcoin grew very quickly and in 2017 reached the highest capitalization in history (334 billion US dollars). Later, there was an expansion of new cryptocurrencies, of which there are currently over 1500 (e.g. Ethereum, Tether, BNB, USD Coin, etc.). The emergence of cryptocurrencies as a new concept affects the change in the perception of payments and money as a means of payment in general. The development of the global cryptocurrency market is indeed rapid and dynamic, and it is becoming an increasingly popular method of payment. Since the emergence of cryptocurrencies is not related to central banks, the need to change the classical systems and economic policies of countries is also expressed. The dynamic development of the mentioned market takes place in parallel with the development of information technologies, so there is a trend of capital outflow from classic capital markets to emerging global cryptocurrency markets. The question arises of the survival of traditional banks in the future, as more users trust cryptocurrencies. Global cryptocurrency markets are expected to expand more and more in the future. The paper will analyze the development of the global cryptocurrency market based on a sample of five of the most significant cryptocurrencies today.</p>

The Impact of Cryptocurrencies on the United States and China’s Economies

This paper will make an intensive study of the impact of cryptocurrencies on the United States and China’s economies. In terms of popularity, policy, and investor attitudes, the US and China’s current situation is compared. The emergence of cryptocurrency has changed the role of traditional Central Bank monetary policy, making it faces new challenges in controlling economic fluctuations and stabilizing financial markets. In addition, the volatility and uncertainty of cryptocurrencies also affect investors' attitudes and behaviors. In the United States, investment risks in cryptocurrencies are widely discussed, while in China, investors are cautious about cryptocurrencies due to the government’s relatively conservative attitude towards cryptocurrencies. In summary, cryptocurrencies have different impacts on the economies of China and the United States. Due to government restrictions and regulations, China's development of cryptocurrencies in the country has been hindered to some extent, while the United States has become one of the leaders in the global cryptocurrency market. However, the potential impact and risks of cryptocurrencies cannot be ignored, and active guidance and supervision from governments and regulatory agencies are needed to ensure their positive role in the economy. On this basis, investors need to invest rationally based on their own risk tolerance and market trends to achieve long-term economic benefits.

Analisis Yuridis Terhadap Keabsahan Perjanjian Investasi Dalam Transaksi Initial Coin Offering (ICO) Berdasarkan Pasal 1320 Kitab Undang-Undang Hukum Perdata

Initial coin offering (henceforth referred to as ICO) as one of the investment developments in the digital era has left legal loopholes over the execution of the ICO in Indonesia, coupled with the emergence of cryptocurrency. This research aims to analyze the validity of an investment agreement on the ICO using cryptocurrency as a payment method along with its legal consequences. With normative-juridical methods, the research results have found out the agreement of the ICO is deemed unlawful according to Article 1320 of the Civil Code due to the clause contravening the legislation, leading to the failure of the fulfillment of the halal clause. Thus, the agreement is deemed to be void ab initio or simply inexistent. Due to the absence of the regulatory provision regulating the ICO, the investors involved could file a lawsuit over the violation harming the parties running the ICO. Thus, it is important to formulate regulatory provisions concerning the ICO in Indonesia that set forth the measures taken to provide legal protection for the aggrieved inventors due to the void ab initio agreement. These regulatory provisions are expected to avert any ICO-related problems as stated above.

The Essentiality of Ethereum Digital Transactions in the Islamic Economy (Iqtishad Washathi)

One of the technological advances found in the economic field is the emergence of crypto currency or also known as cryptocurrency, one type of which is ethereum. The progressivity of these transactions makes transaction activities more efficient because they can be applied virtually. When viewed in terms of profit obtained, ethereum can provide significant returns, but on the other hand also has a very high potential risk in terms of investment. The extreme volatility of ethereum digital transactions allows for spikes in price increases and decreases very quickly. The high volatility in question is a reflection of the level of risk faced by investors. This research was conducted to review the essentiality of ethereum digital transactions in the perspective of Islamic economics, because these transactions are still experiencing debate both in terms of legality and regulation, especially from the perspective of Islamic economics.

The Finance Money Crisis and Cryptocurrencies

The speculative financial services sector and the systemic failures of financial globalisation have prompted a growing call for delinking from the hegemony of the US dollar. These systemic failures have been illustrated by financial mismanagement and the financial crisis of 2007-8. This event paints a dire picture of the consequences associated with poor regulation of the financial sector. This study seeks to interpret these events in terms of Gramsci’s Prison Notebooks and his concept of the ‘morbid symptoms of the interregnum’. According to Babic (2020), these occur when a hegemony and its institutions are ‘dying’, thereby hampering their power. This notion also highlights that the future remains murky, despite public calls for change. Gramsci calls this the ‘new that cannot be born’.This study seeks to extend this framework to the current state of the dollar hegemony. The ‘morbid symptoms’ we will examine include the call to delink from the speculative high-risk US economy, the emergence of cryptocurrencies, and the politics surrounding fiat money. Some have argued that the emergence of cryptocurrencies could be the ‘new’. However, this study argues that the negative characteristics associated with cryptocurrencies such as cybersecurity concerns and price volatility create ambiguity about whether cryptocurrency is the ideal trajectory. Therefore, it argues that ambiguity and calls for change qualify our current monetary situation to be classified as a Gramscian interregnum.It also examines the current fiat money discourse by highlighting how the dollar hegemony may be succeeded by another fiat currency. However, it argues that the inflationary shortfalls of fiat money make this a fallible option, thereby perpetuating the ambiguities within the Gramscian interregnum.

The Relationship of Cryptocurrencies and the Stock Market

In today's world, with the internet and finance closely integrated, the global-ization of cryptocurrency has deepened, prompting people to pay more atten-tion to the impact of cryptocurrency on the entire financial market. This pa-per provides a comprehensive review of relevant literature from five aspects: the development of cryptocurrency, price changes, the impact of cryptocur-rency on the stock market, the impact of cryptocurrency on the banking in-dustry, and the currency and commodity characteristics of cryptocurrency. The author also compares the price curves (in USD) of the S&P 500, ETH, and BTC from March 21, 2022, to March 21, 2023, and hopes to gain in-sights into the relationship between stocks and cryptocurrencies. Our re-search shows that the emergence of cryptocurrency has had a significant im-pact on the financial market, particularly in the banking industry. Although the emergence of cryptocurrency has added vitality to the financial market and increased investment options, the instability of cryptocurrency has also brought risks to investors. As the cryptocurrency market continues to ex-pand, policymakers and investors need to understand its potential impact on traditional financial instruments and the broader economy.

A blockchain-based system for a network design problem considering pricing decisions and sustainability

The emergence of cryptocurrency and blockchain technology revolutionizes supply chains. In addition, blockchain technology can result in novel models ensuring supply chain transparency, originality, and traceability. This research is aimed to develop a blockchain-based system ascertaining supply chain transparency and originality. To this aim, a joint pricing and sustainable network design model is developed for a closed-loop supply chain. Labeling products with internet-of-thing (IoT) and radio frequency identification (RFID) technology strengthens originality and traceability in this supply chain. Afterward, smart contracts deal with transparency concerns while pricing the used products in reverse flow and controlling CO2 emissions. By triggering smart contracts in disorder time, each facility's optimal price and demand can be optimized in an iterative process until the final solution is yielded. Then, the optimization phase of the blockchain-based system starts using data from a distributed ledger form. Then, a fuzzy satisfying approach is used to find the optimal solution across the Pareto regions. Finally, the model is evaluated using real data from the Hamedan glass industry, and sensitivity analyses are done to derive managerial insights, conducting further practitioners and managers of food, agriculture, health, and other supply chains.