A Study of Economic Value Estimation on Cryptocurrency Value back by Gold, Methods, Techniques, and Tools

Abstract

After Bitcoin Introduced around the world, many Cryptocurrencies was created that followed the standard of bitcoin. The use of Bitcoin or other Cryptocurrency as a currency is also an interesting study from an Islamic economic perspective. They tried to use gold with value back by gold , which gold itself is famous for its exchange rate stability.From abu bakar There is a need for monitoring organization of the cryptocurrency, to controlling from Riba (Interest), Maysir (gambling) and ghahar (Uncertainty). To solve this problem there is a need a tool that can predict with certainty based on valid historical data, to produce accurate prediction results and produce Economic value estimations that are close to Gold real value. With the results we can monitoring day by day, see next day value and continuously based on Cryptocurrency with value back by gold, and see what other impact influences the value by looking the factor negative or positive with sentiment analysis. In the last section we discuss and provide method that we analyse from previous work to produce method to estimate value cryptocurrency value back by gold.Ferdiansyah 1 , Siti Hajar Othman 2 , at all | 179 the first cryptocurrency has enjoyed huge success with the capital market reaching 10 billion dollars in 2016 [1].

“Small things matter most”: The spillover effects in the cryptocurrency market and gold as a silver bullet

“…In this part, we examine the role of gold and its association with the cryptocurrency returns. In more recent studies, Rosales, 2019 , Ferdiansyah et al, 2019 argued that gold could be a good hedging instrument against adverse movements in cryptocurrency markets. Furthermore, Adebola et al (2019) examined the convergence (or divergence) of cryptocurrencies when putting gold in the portfolio.…”

Deep Learning Model Analysis and Web-Based Implementation of Cryptocurrency Prediction

“…The main benefit of using RMSE is that it can know the error rate and scale the score in units equal to the estimated value [17]. The RMSE formula can be seen in equation (1) where N is the number of observations, x i is actual, and i as the x ̂ predicted value…”

“…In addition, an application is needed to monitor and prevent transaction uncertainty. In Islam, it also aims to avoid Flowers (Usury), Gambling (Masyir), and Uncertainty (Ghahar) [1]. Therefore, Over the past few years, deep learning algorithms have been widely implemented in the financial field [2], replacing the previous regression algorithms [3] [4].…”

What do we know about cryptocurrency? Past, present, future

“…This finding is documented based on the comparative study among bitcoin, gold and dollar returns mostly by using GARCH and NARDL models (Makarov and Schoar, 2020;Aggarwal et al, 2020;Easley et al, 2019;Ardia et al, 2019;Dyhrberg, 2016a). Furthermore, bitcoin can be classified in between gold and the US dollar on a measurement scale from pure medium of exchange advantages to pure store of value advantages (Ferdiansyah et al, 2019). The authors further argue that high-frequency trading of bitcoin creates appropriate conditions for such hedging as part of digitalized financial system and a new shift in the investment paradigm.…”

“…After inserting the transactions into the blockchain, the procedure of finalizing the transaction is completed. In the transaction process of virtual currency, the system does not allow any refund or chargeback function, except in some newer cryptocurrency (Ferdiansyah et al, 2019;Saito and Iwamura, 2019;Statista, 2019).…”