Cryptocurrency shocks

Abstract

The cryptocurrency market is fast-growing and is highly volatile. By January 2018, the market capitalization of cryptocurrencies reached about 770 billion U.S. dollars at its peak, equivalent to 20 per cent of the narrow money supply (M1) in the United States. Also, the smallest monthly volatility for cryptocurrency is more than the largest monthly volatility for gold and currencies. Considering the potential correlation between cryptocurrency and standard financial markets, the risk that the cryptocurrency imposes on financial markets and investors could be non-negligible-see Liu and Serletis (2019). Moreover, the cryptocurrency has the potential to disrupt traditional payment systems and currencies. It raises questions such as: what is the impact of cryptocurrency market shocks on traditional financial markets? What is the role of cryptocurrency in financial asset pricing?

Cryptocurrencies – “Comparison” of Approach by IAS/IFRS and Czech Accounting Legislative

“…Cryptocurrency is mostly a new and specific class of assets that is not associated with standard factors. According to previous studies, cryptocurrency shocks do not have statistically significant effects on standard financial market (except of the bond market -as stated in study by Liu, Rahman and Serletis (2020)).…”