19
views
2
recommends
+1 Recommend
1 collections
    0
    shares
      Version and Review History
       
      • Record: found
      • Abstract: found
      • Article: found
      Is Open Access

      How Blockchain Network Factors and Market Forces Determine Bitcoin Returns

      Preprint
      In review
      research-article
        1 ,
      ScienceOpen Preprints
      ScienceOpen
      Bitcoin, Bitcoin Price, Bitcoin Network Factor, Bitcoin Market Forces, VAR/VECM
      Bookmark

            Abstract

            The creation of distributed ledgers technologies for information storage spiral secured peer-to-peer interactions which allow for the invention of Bitcoin. Since its invention the price of bitcoin has exhibited excessive volatility, which have attracted undulated attentions. The study considers the isolated influence of network activities, mining (technology) and market information as fundamentals drivers of bitcoin prices. A long-term equilibrium and short-term dynamic is confirmed amongst endogenous system variables in the VECM. This supposes that any deviation from the equilibrium dynamics due to perturbations of market forces (total bitcoin supply and trade volume on exchanges), mining Information (network difficulty, Hashrate, and total transaction fees and network activity (confirmed payments and users adoptions) would be minimized. The model indicates that the cointegration relationship has a reverse adjustment effect on bitcoin return. This explains the why the price, and by implication the return experience different massive run-up, spiky protrusions, resistance, reversals, strong supports and consolidations in the short

            Content

            Author and article information

            Journal
            ScienceOpen Preprints
            ScienceOpen
            3 November 2022
            Affiliations
            [1 ] Department of Accounting Science, Walter Sisulu University, Mthatha, Eastern Cape, South Africa
            Author notes
            Article
            10.14293/S2199-1006.1.SOR-.PPASACK.v1
            1e64f391-81e4-45e7-925e-e03cb0e94c59

            This work has been published open access under Creative Commons Attribution License CC BY 4.0 , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Conditions, terms of use and publishing policy can be found at www.scienceopen.com .


            The datasets generated during and/or analysed during the current study are available from the corresponding author on reasonable request.
            Statistics,Economics
            Bitcoin, Bitcoin Price, Bitcoin Network Factor, Bitcoin Market Forces, VAR/VECM

            Comments

            The author needs to check the abstract very careful and correct grammatical errors in it.

            The conclusion of the paper is not well stated and more work need to be done on recommendation.

            In all the paper is a good one.

            2022-11-29 20:38 UTC
            +1
            One person recommends this

            Comment on this article