Financial Risk Evaluation of Digital Currency Based on CART Algorithm Blockchain

Abstract

In recent years, digital currencies based on blockchain technology have brought about a boom in the research of encrypted digital currencies with the design concept of peer-to-peer trading and decentralization, but due to the lack of supervision and obvious speculative characteristics of the digital currency market, the sharp fluctuations in the market can easily trigger investor sentiment fluctuations, which in turn will lead to social instability and even financial system risks. In this paper, through the analysis of the financial risk source factors of blockchain digital currency, the evaluation index is established, the risk evaluation index system is constructed, and then the CART classification algorithm is used to analyze it and evaluate and test the model. The characteristic factor structure obtained by the CART algorithm in this paper better explains the financial risk characteristics of blockchain digital currency and gives relatively reliable identification results. The results show that the CART decision tree classification method is effective and has a high accuracy rate, which classifies the financial risks of blockchain digital currency, and the method has excellent adaptability and matchability for the classification of risk problems.

Game Theory Analysis of Chinese DC/EP Loan and Internet Loan Models in the Context of Regulatory Goals

“…With the development of information technology and the promotion of digital currencies, many countries have begun to accelerate research on digital currencies, which has led to many scholars conducting research in this field [14][15][16][17][18][19]. KiHoon et al [20] analyzed the dual-currency system of fiat currency and digital currency, and studied the potential crowding-out effect of a fiat currency or digital currency within the framework of traditional currency economic models.…”

“…Shi and Sun [24] conducted a bibliometric review of research on digital currencies and electronic payments from a network perspective. Zhao [15] mentioned that the digital currency market lacks regulation and has obvious speculative characteristics, and that the market's violent fluctuations can lead to social instability and even financial system risks. Liu et al [16] summarized that from private digital currency to digital stablecoins and central bank digital currency, the monetary function of digital currencies is gradually improving, and distributed payment networks may play an important role in the next generation of financial infrastructure.…”