Bitcoin mining activity and volatility dynamics in the power market

Karmakar, Sayar; Demirer, Rıza; Gupta, Rangan

doi:10.1016/j.econlet.2021.110111

Cited by 21 publications

(13 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

Section: Introductionmentioning

confidence: 99%

“…Such approaches, however, have failed to address the nonlinear patterns that might exist between the studied factors and the prices. It is worthy to note that the nonlinearity has been addressed in several studies aiming to investigate the return and volatility behaviors of Bitcoin (see for instance, Karmakar et al, 2021;Gyamerah, 2019;Maria et al, 2018;Katsiampa, 2017). To some up, this paper belongs to the growing literature on the volatility of Bitcoin price, exploring different aspects of the fundamentals of Bitcoin markets.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Asymmetric determinants of Bitcoin's wild price movements

Benlagha

Hemrit

2022

View full text Add to dashboard Cite

PurposeThe present work endeavors to explore the potential nonlinear and asymmetric effects of supply fundamental properties of Bitcoin mining process (velocity, size and stock of Bitcoins, cost of production and mining revenue), DJIA, VIX, economic policy uncertainty and Google Trend on the price of Bitcoin (PB).Design/methodology/approachThe authors apply the Nonlinear Autoregressive Distributed lag (NARDL) approach for the period from November 31, 2013 to December 30, 2020.FindingsThe asymmetric effects of inflation, the size of Bitcoin economy, reveal a positive impact on the PB in the short and long run. In the short run, Bitcoin price shows negative statistically significant sensitivity to positive (negative) changes in DJIA (VIX) index. In addition, Google Trends have an impact on Bitcoin prices indicating that the Bitcoin market is also driven by investors' sentiments. In the long run, negative policy uncertainty shocks increase the PB while in the short run, negative shocks decrease it.Originality/valueThe authors give credence to the best ways of understanding the existence of asymmetries in the link between the PB and a number of influential macro-finance variables to improve the appropriate asset allocation and portfolio management.

show abstract

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Asymmetric determinants of Bitcoin's wild price movements

Benlagha

Hemrit

2022

View full text Add to dashboard Cite

show abstract

“…For instance, the growing adoption of cryptocurrency as money can impair the use of the local fiat currency (Rietz, 2019). In addition, the booming energy usage of mining affects the global energy markets, with a substantial effect documented on renewable investments (Yan et al, 2022;Xia, 2022) and the volatility spike in electricity markets (Karmakar et al, 2021). More research is clearly needed to examine how the crypto market cycles affect the macro economy.…”

Section: Applications and Implicationsmentioning

confidence: 99%

Cryptocurrency puzzles: a comprehensive review and re-introduction

Cai,

Xue,

Zhou

2023

JAL

View full text Add to dashboard Cite

Purpose This study reviews existing cryptocurrency research to provide answers to three puzzles in the literature. First, is cryptocurrency more like gold (i.e., a commodity) or should it be classified as a new financial asset? Second, can we apply our knowledge of the traditional capital market to the emerging cryptocurrency market? Third, what might be the future of cryptocurrency?Design/methodology/approach Bibliometric analysis is used to assess 2,098 finance-related cryptocurrency publications from the Web of Science (WoS) Core Collection database from January 2009 to April 2022. Three key research streams are identified, namely, (1) cryptocurrency features, (2) behaviour of the cryptocurrency market and (3) blockchain implications.Findings First, cryptocurrency should be viewed and regulated as a new asset class rather than a currency or a new commodity. While it can provide diversification benefits to the portfolio, cryptocurrency cannot work as a safe haven asset. Second, crypto markets are typically inefficient. Asset bubbles exist and are exacerbated by behavioural finance factors. Third, cryptocurrency demonstrates increasing potential as a medium of exchange and store of value.Originality/value Extant review papers primarily study one or two particular research topics, overlooking the interaction between topics. The few existing systematic literature reviews in this area typically have a narrow focus on trend identification. This study is the first study to provide a comprehensive review of all financial-related studies on cryptocurrency, synthesising the research findings from 2,098 publications to answer three cryptocurrency puzzles.

show abstract

“…Also, a significant portion of scientific research is devoted to the interrelations between cryptocurrency production and energy markets. Examples include the studies by Corbet et al (2021), Karmakar et al (2021), Schilling and Uhlig (2019), Das and Dutta (2020), Aalborg et al (2019), Ji et al (2019), etc. These researchers analyze the impact of the mining activity on the fluctuations of the electricity price in energy markets, the impact of the electricity price on the cost of cryptocurrency production and the profitability of bitcoin mining, and the impact of the electricity price on the exchange price of bitcoin.…”

Section: Introductionmentioning

confidence: 99%

Managing Electricity Costs in Industrial Mining and Cryptocurrency Data Centers

Dzyuba

Solovyeva

Konopelko

2023

IJEEP

View full text Add to dashboard Cite

2022 has seen a significant decline in global cryptocurrency ratings, especially bitcoin. As it is known, one of the key components of the cryptocurrency’s cost is the amount of electrical energy spent by the computing equipment of the mining data centers. In the context of declining bitcoin rates, the management of the data centers’ energy costs becomes critical for maintaining the profitability and investment return of the mining projects. Russia is among the top-3 leading producers of cryptocurrencies, providing 11% of the global primary bitcoin transactions. In this regard, the management of the data centers’ costs related to the purchase of electricity in the Russian wholesale and retail electricity (capacity) markets presents a high scientific and practical importance. This article analyzes the pricing mechanisms for the purchase of electricity in Russia’s wholesale and retail electricity (capacity) markets on an industrial scale given the specifics of the hourly demand-based pricing. This paper suggests a new metrics system, including a capacity demand management coefficient and a transmission cost management coefficient, which allow setting specific price parameters for the different components of the electricity price based on demand analytics. Simulation of different parameters of the energy cost management in mining data centers demonstrated that the ultimate electricity price can, on average, be reduced by 70% of the initial level across all regions of the Siberian Federal District of Russia. The suggested energy cost management model takes into account both internal and external factors of industrial data centers as well as monitoring of their operations along with the price factors of the wholesale and retail electricity markets. This material may be useful to specialists in the field of management of mining data centers who are involved in the operation and/or design of such facilities across various regions of Russia.

show abstract

Bitcoin mining activity and volatility dynamics in the power market

Cited by 21 publications

References 19 publications

Asymmetric determinants of Bitcoin's wild price movements

Asymmetric determinants of Bitcoin's wild price movements

Cryptocurrency puzzles: a comprehensive review and re-introduction

Managing Electricity Costs in Industrial Mining and Cryptocurrency Data Centers

Contact Info

Product

Resources

About