Main Article Content
The blockchain technology and cryptocurrency are now in the centre of the financial market. The raise of the cryptocurrencies represented by Bitcoin have attracted a large group of scholars to analyze the underlying dynamics of their price fluctuations. Intensive debate emerged on the intrinsic features of Bitcoin. In theoretical analysis, we developed the principle of monetary convention to define the concept of monetary consensus, capturing the nature of monetary system, and categorize it into three types: traditional, algorithm and hybrid. Based on the Wavelet Coherence Analysis, we try to analyze Bitcoin price dynamics in both time and frequency domains, comparing Bitcoin with financial assets, economic and financial indexes, and other cryptocurrencies.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
- Friedman M and Schwartz J. A Monetary History of the United States, 1867-1960. NBER Books, 1963, 70(1): 512-523. https://doi.org/10.2307/1842177
- Friedman M. Money mischief: episodes in monetary history. Harcourt brace Jovanovich, Publishers, 1992.
- Kocherlakota R. Money Is Memory. Staff Report, 1996, 81(2): 232-251. https://doi.org/10.21034/sr.218
- Shannon E. A mathematical theory of communication. Bell Labs Technical Journal, 1948, 27(4) :379-423. https://doi.org/10.1002/j.1538-7305.1948.tb01338.x
- Iwamura M, Kitamura Y, Matsumoto T, et al. Can We Stabilize the Price of a Cryptocurrency?: Understanding the Design of Bitcoin and Its Potential to Compete with Central Bank Money. Discussion Paper Series, 2014, 617: 1-31. https://doi.org/10.2139/ssrn.2519367
- Mukhopadhyay U, Skjellum A, Hambolu O, et al. A brief survey of Cryptocurrency systems, 2016 14th Annual Conference on Privacy, Security and Trust (PST). IEEE, 2016. https://doi.org/10.1109/PST.2016.7906988
- Peters G, Panayi E and Chapelle A. Trends in Crypto-Currencies and Blockchain Technologies: A Monetary Theory and Regulation Perspective. Social Science Electronic Publishing, 2015, 3: 1-25. https://doi.org/10.2139/ssrn.2646618
- Kim T. On the transaction cost of Bitcoin. Finance Research Letters, 2017, 23: 300-305. https://doi.org/10.1016/j.frl.2017.07.014
- Elbahrawy A, Alessandretti L, Kandler A, et al. Evolutionary dynamics of the cryptocurrency market. Royal Society Open Science, 2017, 4(11): 170623. https://doi.org/10.1098/rsos.170623
- Foley S, Karlsen JR and Putnin¸ ˇs TJ. Sex, drugs, and Bitcoin: How much illegal activity is financed through cryptocurrencies? Review of Financial Studies, 2019, 32(5): 1798-1853. https://doi.org/10.1093/rfs/hhz015
- Jia L. Price Fluctuations of the Decentralized Cryptocurrency-PCA/DFM Analysis of the Bitcoin Price. Journal of Financial Development Research, 2019, 11: 53-57.
- Dwyer GP. The economics of Bitcoin and similar private digital currencies. Journal of Financial Stability, 2015, 17: 81-91. https://doi.org/10.1016/j.jfs.2014.11.006
- Nakamoto S. Bitcoin: A Peer-to-Peer Electronic Cash System, 2008. https://bitcoin.org/en/bitcoin-paper
- Decker C and Wattenhofer R. Bitcoin Transaction Malleability and MtGox. In: Kutyłowski M., Vaidya J. (eds) Computer Security - ESORICS 2014. ESORICS 2014. Lecture Notes in Computer Science, vol 8713. Springer, Cham, 2014. https://doi.org/10.1007/978-3-319-11212-1_18
- Ingram C. “A bad apple went away”: Exploring resilience among Bitcoin entrepreneurs, European Conference on Information Systems, 2015.
- Kondor D, Posfai M, Csabai I, et al. Do the Rich Get Richer? An Empirical Analysis of the Bitcoin Transaction Network. Plos One, 2014, 9(2): e97205. https://doi.org/10.1371/journal.pone.0086197
- Bouoiyour J and Selmi R. The Bitcoin price formation: Beyond the fundamental sources. Papers, 2017, 1-28. https://doi.org/10.13140/RG.2.2.23880.32000
- Ciaian P, Rajcaniova M and Kancs D. The Economics of BitCoin Price Formation. EERI Research Paper Series, 2014, 48(19): 1799-1815. https://doi.org/10.1080/00036846.2015.1109038
- Vacha L and Barunik J. Co-movement of energy commodities revisited: Evidence from wavelet coherence analysis. Energy Economics, 2012, 34(1): 241-247. https://doi.org/10.1016/j.eneco.2011.10.007
- Kristoufek L and Scalas E. What Are the Main Drivers of the Bitcoin Price? Evidence from Wavelet Coherence Analysis. Plos One, 2014, 10(4): e0123923. https://doi.org/10.1371/journal.pone.0123923
- Wang HJ, Li MM and Xu QF. Property Rights Protection,Information Transparency and Firm Value– Empirical Evidence from Shenzhen A-share Listed Firms. Finance Research, 2017.
- Delimatsis P. International Trade in Services and Domestic Regulations: Necessity, Transparency, and Regulatory Diversity. Oup Catalogue, 2009, 12(2): 3165-3173. https://doi.org/10.1093/jiel/jgp004
- Gallegati M, Ramsey B and Semmler W. The US Wage Phillips Curve across Frequencies and over Time. Oxford Bulletin of Economics and Statistics, 2011, 73(4): 489-508. https://doi.org/10.1111/j.1468-0084.2010.00624.x
- Aguiarconraria S and Soares J. Business Cycle Synchronization and the Euro: A Wavelet Analysis. Journal of Macroeconomics, 2011, 33(3): 477-489. https://doi.org/10.1016/j.jmacro.2011.02.005
- Addison PS. The Illustrated Wavelet Transform Handbook: Introductory Theory and Applications in Science. Science Engineering Medicine & Finance Institute of Physics Publishing, 2002. https://doi.org/10.1887/0750306920
- Popper N. Digital Gold: The Untold Story of Bitcoin. Penguin Books Ltd, ISBN: 9780241180990, 2016.