On Prices of Privacy Coins and Bitcoin

Abstract

Since the inauguration of cryptocurrencies, Bitcoin has been under pressure from competing tokens. As Bitcoin is a public open ledger blockchain coin, it has its weaknesses in privacy and anonymity. In the recent decade numerous coins have been initiated as privacy coins, which try to tackle these weaknesses. This research compares mostly mature privacy coins to Bitcoin, and comparison is made from a price perspective. It seems that Bitcoin is leading privacy coins in price terms, and correlation is typically high and positive. From the earlier crypto market peak of 2017–18, only a very small number of coins are showing positive returns in 2021. It is typical that many privacy coins have lost substantial amounts of their value (ranging 80–90%) or that they do not exist anymore at all. Only Horizen and Monero have shown long-term sustainability in their value; however, their price changes follow that of Bitcoin very closely. The role of privacy coins in the future remains as an open issue.

Is it possible to establish the link between drug busts and the cryptocurrency market? Yes, we can

“…The underlying proposition is that drug traffickers/participants prefer to use liquid and easily convertible cryptocurrencies (through ATM's) (Goldman et al, 2017)-however, the results indicate that these participants are even more particular in their choice of cryptocurrency, which possibly may determine the quality of the encryption algorithms. For instance, Monero, Dash and Zcash are commonly accepted as having stronger protection and anonymity than others, such as Bitcoin (Hilmola, 2021).…”

Stabilność i rozpowszechnienie najważniejszych kryptowalut

“…Gdyby obliczać go nie dla wartości kursów, a dla logarytmicznych stóp zwrotu, byłby jeszcze bardziej stabilny -ok. 89% wartości w tym okresie przekraczało pułap 0,8. Ta co do zasady silna wzajemna korelacja kursów kryptowalut, szeroko analizowana i wskazywana w literaturze (Aslanidis, Bariviera i Perez-Laborda, 2021;Ciaian, Kancs i Rajcaniova, 2017;Hilmola, 2021;Hossain i Ismail, 2021;Kozlovskyi i in., 2021), wydaje się wynikać przede wszystkim ze zbieżności czynników fundamentalnych je kształtujących oraz z wyznaczania tendencji na rynku kryptowalut przez bitcoina (Michalczyk, 2018b(Michalczyk, , 2018c(Michalczyk, , 2020(Michalczyk, , 2021. Zjawisko to jest zresztą powszechnie określane mianem "podążania za liderem" (Waryszak, 2022, s. 120-121).…”