Do economic crises cause trading in Bitcoin?

Zhao, Jinsha

doi:10.1108/rbf-02-2022-0048

Cited by 7 publications

(6 citation statements)

References 37 publications

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“…In this regard, the factors affecting the acceptance and use of cryptocurrency in Iranian society were identified. The results of the present study in line with the results of the study of Zhao (2022), showed that the sanctions conditions as economic crisis influence the use of cryptocurrencies in commercial transactions in the country under sanctions.…”

Section: Blockchain Technology Adoptionsupporting

confidence: 88%

“…In a similar study, the capability of open-source software under sanction conditions has been mentioned (Ronaghi, 2021). Also, according to the findings of this study, Zhao (2022) showed that economic crises were a factor affecting the transaction volume of Bitcoin exchanges. Almaqableh et al (2022) also referred to the impact of terrorist attacks on the digital currency market.…”

Section: Discussionmentioning

confidence: 58%

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A contextualized study of blockchain technology adoption as a digital currency platform under sanctions

Ronaghi

2022

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PurposeThe blockchain technology is based on distributed ledger. Many stakeholders, such as developers, entrepreneurs and technology lovers, consider the blockchain as an economic and business re-creation that is faced with numerous challenges in its application. Blockchain technology is the backbone of many digital currencies, i.e. Bitcoin and Ethereum. Although presently digital currencies are recognized as payment and exchange instruments in many countries, the economic sanctions imposed on some countries have restricted the possibility of the trading. So, this study seeks to evaluate the adoption of blockchain for digital currency use in Iran in the shadow of economic sanctions.Design/methodology/approachThe developed value-based technology adoption model and smart PLS software have been used in this research. The statistical population of the study was people active in the Iranian stock market; the purpose for this selection was their familiarity with financial and digital currency issues.FindingsThe results show that the terms of sanctions, usage and facilitating conditions are directly related to users' perceived value of digital currency and its use; As a result, in a sanctioned country like Iran, the use of digital currencies is being accepted as a way of rolling out economic sanctions and thus making commercial payments.Originality/valueAs well as the fact that evaluating the adoption of the blockchain technology in a sanctioned country like Iran is considered as the originality aspect of the research, applying an extended model in the technology adoption is also the research innovation.

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Section: Blockchain Technology Adoptionsupporting

confidence: 88%

Section: Discussionmentioning

confidence: 58%

A contextualized study of blockchain technology adoption as a digital currency platform under sanctions

Ronaghi

2022

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“…Another study by Long et al (2021) indicates that when confronted with shocks of various uncertainties, Bitcoin is unable to function as a safe haven, whereas gold can act as a buffer against uncertainty to different degrees. During the COVID-19 outbreak, neither Bitcoin nor gold is safe haven, but they can be used as hedging solutions (Zhao, 2022)…”

Section: Literature Reviewmentioning

confidence: 99%

Testing bitcoin’s safe-haven property and the correlation between Bitcoin, gold, oil, stock markets, and Google trends

Thi Huong Nguyen,

Hong Vu,

Phuong Le

2024

Investment Management and Financial Innovations

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Since its public introduction in 2009, Bitcoin has grown to be the most well-known cryptocurrency worldwide. There is still debate as to whether Bitcoin may be used as a hedge against other assets. The purpose of this study is to investigate the correlation between Bitcoin and conventional commodity markets such as gold, crude oil, stock markets, and investor interest (quantified via Google Trends). In addition, the paper also tests Bitcoin’s safe haven role compared to other commodity markets. The Vector Autoregression model using daily database collected during the period 2013–2021 is employed to investigate the relationship between Bitcoin and traditional commodity markets. The impulse response function is used to analyze Bitcoin price movements against economic shocks from gold, oil prices, and the Dow Jones Industrial Average. In addition, the value-at-risk (VaR) model is used to test Bitcoin’s safe-haven property compared to other conventional commodity markets. The research results show that Bitcoin has negative impacts on gold, crude oil prices, and the stock market. Besides, Bitcoin responds negatively to a sharp decline in investor interest. Furthermore, the results of the VaR model show that Bitcoin is the second most volatile and risky asset, only after the crude oil market, and much riskier than gold. This result proves that Bitcoin cannot yet be considered a safe-haven instrument. These findings have several implications for investors and policymakers to minimize the risks associated with this cryptocurrency. AcknowledgmentThe authors would like to send their sincere thanks to the Reviewers and Editorial Board of the Journal. Their valuable comments and helpful support helped improve the paper’s quality. No funding was granted for this study.

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“…There is evidence that the distribution of business varies throughout continents rather than just among certain nations [26]. Between 2014 and 2019, eight currencies' value against the USD fell by more than 60% including Venezuela Bolivar and Nigerian Naira [27]. Bitcoin is being rapidly used for payment transactions and trade with other nations including India, Indonesia, Kenya, Nigeria, Pakistan, and Tanzania.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…The findings provide proof of bitcoin's safe-haven feature because over the sample period, the eight currencies experienced significant losses. Bitcoin trade is always correlated with currency depreciation [27]. Lebanon is another example where the national currency has lost 80% of its value over the past two years.…”

Section: Bitcoin Usage In Underdeveloped Countriesmentioning

confidence: 99%

The power of Bitcoin to attract investment in Underdeveloped Countries: A neoliberal perspective of Nigeria

Affandi,

Rifkila

2023

E3S Web Conf.

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The era of digital money was introduced years ago and is rising over the last few years. This is implemented by the fast-growing globalization process that spreads new technologies all over the world. Even in underdeveloped African nations such as Nigeria, this article examines the emergence of digital currencies such as Bitcoin. The ways that payments are made have changed significantly on a worldwide scale. This article suggests that the development of digital currencies, and Bitcoin in particular, is part of the process of instituting globalization through digital technologies. This article analyzes the phenomenon of Bitcoin in Nigeria from a neoliberal perspective, where globalization serves as a catalyst for the liberalization process. This article employs methods based on qualitative research. We use qualitative data obtained from previous studies, literature, and news source that is searched through google. According to this article, Bitcoin usage in Nigeria has increased due to increased investment. Nigeria that undergoes an economic crisis adopt Bitcoin in hopes for a better economic situation which resulted in the government accepting neoliberalism system. This article focuses on how underdeveloped nations use Bitcoin in international commerce to attract investment. Bitcoin has aided people in investing and improving their standard of living which is consistent with the neoliberal viewpoint; those who have control over their resources and act int their best interests will prevail.

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Do economic crises cause trading in Bitcoin?

Cited by 7 publications

References 37 publications

A contextualized study of blockchain technology adoption as a digital currency platform under sanctions

A contextualized study of blockchain technology adoption as a digital currency platform under sanctions

Testing bitcoin’s safe-haven property and the correlation between Bitcoin, gold, oil, stock markets, and Google trends

The power of Bitcoin to attract investment in Underdeveloped Countries: A neoliberal perspective of Nigeria

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