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We analyze how network effects affect competition in the nascent cryptocurrency market. We do so by examining the changes over time in exchange rate data among cryptocurrencies. Specifically, we look at two aspects: (1) competition among different currencies, and (2) competition among exchanges...
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How do cryptocurrency prices evolve? Is there any interdependence among cryptocurrency returns and/or volatilities? Are there any return spillovers and volatility spillovers between the cryptocurrency market and other financial markets? To answer these questions, we use GARCH-in-mean models to...
Persistent link: https://www.econbiz.de/10012866255
We analyze how network effects affect competition in the nascent cryptocurrency market. We do so by examining the changes over time in exchange rate data among cryptocurrencies. Specifically, we look at two aspects: (1) competition among different currencies, and (2) competition among exchanges...
Persistent link: https://www.econbiz.de/10014141805
How do cryptocurrency exchanges compete with each other? We show that small and large crypto exchanges appear to be complements, rather than substitutes, as traditional oligopoly theory would predict. When large exchanges list new tokens, trade volumes on small exchanges increase, and small...
Persistent link: https://www.econbiz.de/10014350192
-2003, attempting to understand motives for issuing in foreign currency, and determinants for the choice of currency. We consider the … following influences on the currency choice when issuing foreign currency denominated debt: the microeconomic characteristics of … addition to cost minimisation, hedging motives and the desire to establish an investor base influences the choice of currency …
Persistent link: https://www.econbiz.de/10003554956
We develop a dual currency search model to study equilibrium currency exchange and the determination of nominal … numerical methods to solve for the steady-state distributions of currency portfolios, nominal exchange rates and value functions …. When one of the currencies is 'risky', equilibria exist in which the safe currency trades for multiple units of the risky …
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