Role Of Cryptocurrencies Research Articles

Quantile and expectile copula-based hidden Markov regression models for the analysis of the cryptocurrency market

The role of cryptocurrencies within the financial systems has been expanding rapidly in recent years among investors and institutions. It is therefore crucial to investigate this phenomenon and develop statistical methods able to capture their interrelationships, the links with other global systems and, at the same time, the serial heterogeneity. Here we introduce hidden Markov regression models for jointly estimating quantiles and expectiles of cryptocurrency returns using regime-switching copulas. The proposed approach allows us to focus on extreme returns and describe their temporal evolution by introducing time-dependent coefficients, evolving according to a latent Markov chain. Moreover to model their time-varying dependence structure, we consider elliptical copula functions defined by state-specific parameters. Maximum likelihood estimates are obtained via an expectation-maximization algorithm. The empirical analysis investigates the relationship between daily returns of five cryptocurrencies and major world market indices.

The Role of Cryptocurrencies in Committing Terrorist and Extremist Crimes in Modern Conditions

Countering and combating manifestations of terrorism and extremism is an urgent and priority task for law enforcement agencies. These provisions underlie the national security of the state, and the fight against manifestations of this kind of crime rightfully deserves the most serious attention. The article presents the prerequisites for the use of cryptocurrencies for criminal purposes, based on the features of its functioning and use. The role of cryptocurrencies in the financing of terrorist and extremist activities in the current international financial and economic environment is indicated. The main problems that law enforcement agencies have to face in identifying and suppressing criminal activity, the financing of which can be organized with the help of cryptocurrencies, are reflected. Substantiated points of view are presented regarding the danger of the spread of cryptocurrencies in crimes of this direction, not only in relation to the Russian Federation, but also to the world community as a whole. The author presents statistical data of the indicated areas of crime and analyzes it. The results of a study by third-party organizations specializing in research in the field of cryptocurrencies are also presented and summarized. Examples of the use of cryptocurrencies to finance terrorist and extremist activities are noted. The ways of solving the presented problems are proposed, taking into account the mechanisms already proposed by scientists for preventing crimes using cryptocurrencies. In particular, the main emphasis is placed on the need to modernize the existing mechanisms of financial control and the reasonable involvement of representatives of large IT companies in this activity, since the main flow of information capable of exposing criminal activity is accumulated by them.

The place and role of cryptocurrencies in the international financial market

Subject. The article investigates the role of cryptocurrency in the international financial market. Objectives. The aim is to analyze the place and role of cryptocurrencies in the international financial market. Methods. The study rests on logical, historical, and statistical analysis, and methods of comparison, classification, and deduction. Results. The paper defines the concept of cryptocurrency, considers the problem of including cryptocurrencies in the economic system, characterizes the cryptocurrency market at the international level, determines the place and role of cryptocurrencies in the international financial market. Conclusions. Cryptocurrency is a new phenomenon in the global economy. It plays a special role in the investment market. The introduction of cryptocurrency into everyday life is possible only after solving all technical, legal, and economic issues directly related to its circulation. The problem with legal regulation is particularly relevant, since the attitude of governments of different countries to digital assets is constantly changing. This is due to the fact that decentralized systems can be used in the shadow economy, which threatens the stability of the national economy of States. Nevertheless, the development of digital economy cannot be stopped, so it is worth adapting to the new realities of the modern world.

Risk characteristics and connectedness in cryptocurrency markets: New evidence from a non-linear framework

Existing research pays less attention to the risk characteristics and connectedness of higher moments of cryptocurrencies. We dynamically analyze the risk characteristics of cryptocurrencies and their connectedness at four levels: return, volatility, skewness, and kurtosis. First, there are price bubbles in five popular cryptocurrencies, with long bubble periods during the COVID-19 epidemic. The volatility, skewness and kurtosis of cryptocurrencies are characterized by high persistence, with the exception of BNB. Second, the connectedness between the five cryptocurrencies is significant at higher moment conditions. The results for time-varying connectedness show that the total spillover of volatility, skewness and kurtosis varies over a wider range than returns, and that the total spillover of returns, volatility and skewness peaks during COVID-19. According to the pairwise results, there is strong connectedness between Ether and Bitcoin at the level of returns, volatility, skewness, and kurtosis, which is more significant at higher moments. Third, the role of cryptocurrencies changes not only over time, but also over order moments. The cryptocurrency market experienced significant volatility during 2018 and the first half of 2019, with Bitcoin being the most significant net exporter of returns and volatility spillovers. Cardano is a net exporter of both skewness and kurtosis spillover, and it is highly persistent with respect to volatility, skewness, and kurtosis. Overall, the leader in risk spillover at all order moments is Ether, and the net receiver is BNB.

The Shape of International Art Purchasing—The Shape of Things to Come

This article is about the role of cryptocurrencies, for example, decentralized autonomous organisations (DAOs) and non-fungible tokens (NFTs), in the international art market. These are cryptocurrencies which can be used to work with local governments to deliver non-state-funded consultancy in, for example, funding bid writing or community risk assessment. Self-polycentric and cause-based DAOs typically focus on actively listening to their token owners, utilizing the group’s skills under a transparent incentive structure fostering trust. This article delivers a critical evaluation of DAOs as an organisational management structure and business operations vehicle. This evaluation considers DAOs’ utility in supplying goods and services, through the critical lens of facilitating the international art market. The objective of this article is to raise wider awareness and understanding of DAOs as a legal entity. This paper acts to introduce the uninitiated to the business, societal value and legal uncertainties of DAOs and NFTs. DAOs are internet-based organisations built upon a set of instructions presented in and controlled by a computer programme, i.e., a smart contract. Effectively, DAOs are an artificial, electronic, online, digital technology entity, with no physical form.

The Role of Cryptocurrencies in Shaping the Future of Mobile Money Services in Lusaka, Zambia.

Purpose: This research provides a comprehensive exploration of the intersection between cryptocurrencies and mobile money services, particularly in the Zambian context. The study illuminates both the potential and the challenges of integrating cryptocurrencies with mobile money services, providing a novel contribution to the existing body of knowledge.
 Methodology: Utilizing descriptive and inferential statistics, the study reveals a moderately strong positive correlation between cryptocurrency usage and both the volume and frequency of mobile money transactions. However, it also identifies significant barriers to adoption, including a lack of user awareness, security concerns, regulatory ambiguity, and the volatility of cryptocurrencies.
 Findings Through thematic, content, and comparative analysis, the study underscores the regulatory challenges, increased security risks, and the added burdens of compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations associated with the integration of cryptocurrencies. Moreover, the research identifies the potential disruption of existing mobile money systems by blockchain technology and the significant infrastructural investments and regulatory adaptation that it necessitates.
 Unique contribution to theory, policy and practice: The research proposes two strategies for aligning the regulatory frameworks for mobile money services and cryptocurrencies in Zambia: development of specific regulations or guidelines for cryptocurrencies that align with existing mobile money rules, and establishment of a separate regulatory framework that addresses the unique characteristics of cryptocurrencies. In highlighting the transformative potential of blockchain technology and the importance of user perspectives and regional variables in the integration process, the study offers valuable insights for researchers, policymakers, and practitioners. The research underscores the necessity for a responsive approach, continuous review, and update of regulatory frameworks, emphasizing consumer protection, market stability, and the promotion of innovation. While the research confirms the promising opportunities, cryptocurrencies offer to enhance mobile money services, it also emphasizes the need for careful consideration of potential adverse effects. Future research is encouraged to continue exploring this rapidly evolving field, broadening the geographical scope, and focusing on user education and robust security measures.

Cryptocurrency as a Possible Alternative to the De-dollarization of the Global Monetary System

The article analyzes the ongoing changes associated with the financial instability of the current global monetary system. In the course of the study, the prerequisites aimed at changing the world monetary order were considered; an assessment was made of the possible use of cryptocurrency as a new global monetary standard. The concept of supranational currency is formulated. The paper proposes an alternative theoretical solution for the circulation of the world monetary system, based on the simultaneous circulation of several types of world currencies at once, including cryptocurrencies. The purpose of this study was to study and determine the trends of ongoing changes associated with the transformation of the world monetary system, the circulation of cryptocurrency and a decrease in the level of confidence on the part of the world community in the US dollar. As a hypothesis of the study, the judgment is formulated that the improvement of the world monetary system must be carried out through the introduction and development of cryptocurrency as a new independent financial instrument that meets the requirements of modern society, as well as the processes of functioning of international monetary relations. The analysis of the actual problems of the current state and the prospects for the circulation of the current global monetary system made it possible to formulate the factors that influence the increase in the demand for cryptocurrencies among market participants. An assessment of the future of cryptocurrencies was carried out, the prospects for the influence of the existing world monetary system on international financial relations, as well as the further role of cryptocurrencies in it, were considered.

The Role of Cryptocurrencies in Private Law and the General Framework for their Regulation


 The 21st century is known for its strong technological advancements, where blockchain technology and a cutting-edge product built on it like cryptocurrencies are evolving daily. According to recent research, bitcoin is particularly appealing to both experienced and novice investors. Numerous individuals and legal entities around the world accept cryptocurrencies as payment. Cryptocurrency can be used to purchase both products and services. As a result, the need for legal regulation of cryptocurrency is high on the priority list.
 The purpose of this article is to evaluate the legal status of cryptocurrencies, namely what its legal character is and whether it is conceivable to treat cryptographic currency as an object of private law, as property, as electronic money, or as virtual cash. Is it better than traditional currencies, and if so, what are they? All of the foregoing will be reviewed in light of the suggestions of the United States of America, Australia, Argentina, Brazil, Germany, Zealand, Japan, South Korea, China, Georgia, and the European Central Bank.

Crypto currency and green investment impact on global environment: A time series analysis

Climate change has become a central theme in both national and international forums in recent decades. In this regard, the argument has quickly moved and centered on the role of crypto currencies, in addition to the fundamental culprits of ecological destruction, such as fossil fuels, agricultural, and industrial pollution. The aim of the present study is to assess the role of asymmetries in determining the relationship between blockchain and green investment with the environment using the Non-linear Autoregressive Distributive Lag (NARDL) technique. The data from the United States of America (USA) is used over the period from 2011 to 2020. The findings reveal that, contrary to common belief, there is asymmetric relation between crypto currencies and biofuel usage in both the short and long run. Similarly, asymmetry also exists between renewable energy use and consumption of biofuel. Further, there is a strong coherence among the concerned variables is also proved in this study. Therefore, the study implies that assuming symmetric and weak coherence relationships between blockchain technology and green investment in the global environment produce biased and misleading findings which are not a true representation of the real-world scenario. Based on this the study suggests that policymakers and environmentalists may strive to achieve low carbon emissions using environment-friendly technology and less energy use. Lastly, the negative nonlinear impacts of blockchain technology and green investment must be considered in the carbon emissions released in the USA economy.

Analyzing the Connection between Energy Prices and Cryptocurrency throughout the Pandemic Period

Today's discussion centers on whether cryptocurrencies may be used to pay for products and services in developed and underdeveloped nations. The role of cryptocurrencies as investment and speculative trading vehicles is also expanding. The cryptocurrency bitcoin serves as an illustration of such use. The first cryptocurrency to develop value without initially satisfying requirements and carrying any type of collateral in the form of traditional currencies is bitcoin. The analysis of the variables influencing the price of bitcoin is one of the most hotly debated subjects in the financial literature. The purpose of this study is to look into the connection between the price of natural gas and crude oil and the cryptocurrency Bitcoin. In this study, the effect of Brent oil, crude oil and natural gas prices on Bitcoin was examined. For the data containing the weekly time series for the period 05.01.2020-26.12.2021, FMOLS and DOLS tests were conducted, which show the coefficient of cointegration, causality and relationship. According to the findings of the study, according to the FMOLS test, 1% Bitcoin in brent oil price increases 0.000176% (probability values according to DOLS do not confirm the effect). Likewise, when we look at crude oil, according to FMOLS test, 1% Bitcoin in crude oil price increases 0.000180% (the probability values according to DOLS do not confirm the effect). When we look at the changes in the Bitcoin price, according to the DOLS test, a 1% increase in the Bitcoin price increases the Brent oil by 77.86132% (the probability values according to FMOLS do not confirm the effect).

Digital currency - role of cryptocurrency in the new financial era

Digital currency - role of cryptocurrency in the new financial era

The Role of Cryptocurrencies in Democratizing Money

The Role of Cryptocurrencies in Democratizing Money

The Role of Cryptocurrencies in Business

The Role of Cryptocurrencies in Business

The role of cryptocurrencies in business

The role of cryptocurrencies in business

Prospects and risks of using cryptocurrency in the modern economic space

The modern information society required the emergence of a new financial means of payment. This means of payment is more innovative than conventional money. This means is called cryptocurrency. The purpose of the article is to assess the prospects and risks of using cryptocurrencies in the current economic environment. The modern information society required a new financial means of payment. This innovative means of payment was a new digital currency – cryptocurrency. Cryptocurrency is digital money used instead of real money. At the same time, cryptocurrencies will not be able to completely replace national currencies in the near future. This is due to the prohibition of certain countries. A serious threat posed by cryptocurrencies is the possibility of illegal activities. Confidentiality and security of cryptocurrency transactions are high. Therefore, the government cannot track any user by their wallet address or monitor their data. Cryptocurrencies can be used to pay for smuggling, drug trafficking, human trafficking, arms sales, and terrorist financing. The risks of cryptocurrencies are also the bankruptcy of exchanges, which will lead to a drop in the cryptocurrency rate and the lack of guarantees. Traditional money is guaranteed by state assets, while cryptocurrencies are not. Cryptocurrencies can be considered a revolutionary tool in the field of monetary payments. Cryptocurrency is a serious competitor to traditional currencies. The high volatility of cryptocurrencies allows them to be used as one of the instruments of an investment portfolio. However, the trends traced in the article suggest that the role of electronic means of payment will continue to grow steadily over time. Today, cryptocurrencies are acquiring such properties as riskiness, decentralization, and alternative nature compared to fiat money. The results of the study prove that despite the multidirectional trends, the role of cryptocurrencies will continue to grow steadily.

A Study on the Role of Crypto Currency and Blockchain in Audit and Investigation

This article attempts to highlight the emergence of crypto currency and blockchain technology and its application in audit and investigation. It also focusses on the role of blockchain technology in todays audit performance. It outlines the need to revamp the audit procedure with the newer developments of crypto currencies..

The Role of Cryptocurrency in the Sustainable Development of Business

Money is a social convention, a method of acquiring various goods and services designed to facilitate a person’s life. Over time, money has taken different forms, from gold coins to fiat coins. Along with digitization, the emergence of a payment method that should not involve a banking institution or a government that should have an influence on its purchasing power was desired, and in 2008 cryptocurrencies appeared. Cryptocurrencies are virtual currencies, unregulated by a financial institution, used as a payment method, and their system of use is based on a peer-to-peer technology, without the need for a third party intervention. The purpose of this paper is to present an overview of the cryptocurrency phenomenon and the impact that cryptocurrencies have on sustainable business development.

The role of cryptocurrencies in cyber security and the fight against crime

The role of cryptocurrencies in cyber security and the fight against crime

All that is solid melts in the Ethereum: the brave new (art) world of NFTs

ABSTRACT This article explores non-fungible tokens, better known as NFTs, or blockchain-based certificates of ownership for visual or physical assets, a cultural phenomenon which has come to the media attention following the sale of a non-fungible token photo collage, Everyday: The First 5,000 Days, for more than 69 million USD at a Christie's auction in March 2021. The sale made Mike Winkelman (aka Beeple) the third most valuable living artist, behind Jeff Koons and David Hockney starting off a conversation about NFTs which has covered a wide range of issues, including: the contested relationship between art and the market, the long debated question of collective and/or individual authorship within digital aesthetics, the most recent developments in Artificial Intelligence and their creative potential with regard to NFTs – i.e. the appearance of intelligent non-fungible tokens (iNFTs) – and, lastly, the role of cryptocurrencies as a tool for artists’ empowerment or, conversely, as a selling out, under new technological guises, to the capitalist logic of the market. The article reviews and evaluates such debates with the aim to offer critical pointers to help the reader navigate the emerging world of Crypto art.

The role of cryptocurrency in the dynamics of blockchain-based social networks: The case of Steemit.

A shift of paradigm is running over online social platforms: the over-centralization of these platforms is leaving room for decentralized solutions based on blockchain technologies, such as blockchain-based online social networks—BOSNs. Among the many unknown aspects of these techno-social systems, the objective of this study is to propose an analytical framework to assess the impact of the cryptocurrencies linked to a BOSN platform on the evolution of its social network and on the behavior of their users, in terms of production of content and/or its promotion through a voting and rewarding system. The framework has been applied to Steemit, one of the most widespread BOSNs, from which we collected three-year-long high-resolution data on its evolution along with the price of its main cryptocurrencies. On users’ activities extracted from these longitudinal data, we applied a time-series correlation analysis and a correlation analysis between the action allocation strategies and the obtained rewards, in the case of most central accounts. The analysis has highlighted pieces of evidence of the influence of the cryptocurrency price on users’ actions, particularly on actions that shape the structure of the social networks. Second, we also found highly rewarded users prefer actions related to the promotion of content rather than the creation of high-quality content, exploiting the reward distribution mechanisms implemented by the platform. These findings highlight that the shift of paradigm towards blockchain and cryptocurrency technologies might strengthen the influence of financial and economic factors rather than relational/social aspects on the evolution of these new complex techno-social systems.