PHYSA-201027_R1b_Demythifying the belief in cryptocurrencies decentralized aspects.pdf (446.42 kB)
Demythifying the belief in cryptocurrencies decentralized aspects. A study of cryptocurrencies time cross-correlations with common currencies, commodities and financial indices
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posted on 2020-07-02, 10:27 authored by SA Manavi, G Jafari, S Rouhani, M AusloosThe main question of this article is about whether cryptocurrencies, within their decentralization aspects, are a real commodity or/and a virtual currency. To resolve such a dilemma, we compare 7 cryptocurrencies with a sample of the three types of monetary systems: 28 fiat money, 2 commodities, 2 commodity based indices, and 3 financial market indices. We use the matrix correlation method. We display dendrograms and observe “hierarchy clustering”, as a function of data coarse graining. In fact, we confirm that the cryptocurrencies are not decentralized. We observe also that most of the currencies in the world are not significantly correlated or present a weak correlation with cryptocurrencies. Our results show that the cryptocurrency market and Forex market belong to different system communities (or regions).
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Physica A: Statistical Mechanics and its Applications, Volume 556, 2020, 124759Author affiliation
School of BusinessVersion
- AM (Accepted Manuscript)
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Physica A: Statistical Mechanics and its ApplicationsVolume
556Publisher
Elsevier BVissn
0378-4371Copyright date
2020Available date
2020-06-02Publisher DOI
Language
enPublisher version
https://www.sciencedirect.com/science/article/pii/S0378437120303836Usage metrics
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