Publication Type

Journal Article

Version

submittedVersion

Publication Date

3-2020

Abstract

Cryptocurrency refers to a type of digital asset that uses distributed ledger, or blockchain, technology to enable a secure transaction. Although the technology is widely misunderstood, many central banks are considering launching their own national cryptocurrency. In contrast to most data in financial economics, detailed data on the history of every transaction in the cryptocurrency complex are freely available. Furthermore, empirically oriented research is only now beginning, presenting an extraordinary research opportunity for academia. We provide some insights into the mechanics of cryptocurrencies, describing summary statistics and focusing on potential future research avenues in financial economics.

Keywords

Cryptocurrency, Blockchain, bitcoin, Economic bubble, Peer-to-Peer, Finance, Cryptographic hashing, Consensus, Proof-of-work, Proof-of-stake, Volatility

Discipline

Finance and Financial Management | Technology and Innovation

Publication

Journal of Financial Econometrics

Volume

18

Issue

2

First Page

181

Last Page

208

ISSN

1479-8409

Identifier

10.1093/jjfinec/nbz033

Publisher

Oxford University Press

Embargo Period

5-19-2021

Copyright Owner and License

Authors / SKBI

Additional URL

https://doi.org/10.1093/jjfinec/nbz033

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