Bhambhwani, S., Delikouras, S., Korniotis, G. M., & others. 2019. Do fundamentals drive cryptocurrency prices?.
Added by: Jack (2023-01-08 14:38) Last edited by: Jack (2023-01-20 18:00)
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Abstract
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We examine if two fundamental blockchain characteristics affect cryptocurrency prices. They are computing power (hashrate) and network (number of users), which are related to blockchain trustworthiness and transaction benefits. We find a significant long-run relationship between these characteristics and the prices of prominent cryptocurren- cies. We also document that cryptocurrency returns are exposed to fundamental-based risk factors related to aggregate computing power and network, even after controlling for Bitcoin return and cryptocurrency momentum. In out-of-sample tests, the com- puting power and network factors can explain the return variation of a broad set of cryptocurrencies, whose fundamentals are not included in the factors
Added by: Jack Last edited by: Jack
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