Crypto Currencies and Meta Verse
Author Jayesh Pardeshi
Roll no 0222106, MMS First year
Kohinoor Business School, Kurla.
Crypto-currencies Trading and Energy Consumption:
According to Christophe Schinckus, Canh Phuc Nguyen and Felicia Chong Hui Ling, the effects of crypto-currencies trading on the energy consumption has an important consequence of blockchain technology on climate change. They have use the data of Bitcoin trading volume as well as all crypto-currencies trading volumes for the period going from 2014M1 to 2017M12 to investigate the effects on the primary energy consumption. Results showed a positive correlation between crypto-currencies trading volumes and the energy consumption. It has a Granger-causality to energy consumption in the period of study indicating that these two variables have a long-run co-integration. Also shows a negative influence of the trading of crypto-currencies – precisely, the higher the crypto-currency activities are, the higher the energy consumption is, affecting therefore the environment.
Crypto Currencies and their Destinies in the Future:
According to Mehmet Hasan Eken and Erkut Baloglu, the features of Crypto Currencies, which are not backed by governments, are investigated with regards to their specialties, usage areas and current structures. A similarity between Crypto Currencies and Free Banking Era Banknotes can be noticed. The possible risks and outcomes with regards to the future usage of crypto currencies are analysed.
Demystifying Bitcoin: Sleight of Hand or Major Global Currency Alternative?
Marko Malovic, inferred that Bitcoin has been the loudest buzzword in global finance over the last year. This paper focuses on critical analysis of bitcoin as an international currency alternative. Moreover, bitcoin’s next to none correlation with other major currencies’ movements renders it unsuitable for managing FX risk or hedging purposes. Finally, having in mind that it lacks formal reserves or deposit-insurance scheme to back it up yet it’s also prone to hacking, bitcoin resembles and behaves more like a pyramidal investment vehicle than a global currency alternative.
Crypto Currencies and the Blockchain Technology: An Evolutionary Review of Money and the Payment Systems
Jalali-Naini, Seyed Ahmad Reza and Rabie Hamedani, Hasti, both utilize the main findings from the recent literature to set the economic foundation for the existence of money, its modern interpretation as “memory” (Chokerlakota 1998) and how the Blockchain technology has empowered crypto currencies to perform this role in the information age. In order to locate the issue in a historical perspective and in line with this strand of thought, they consider direct and indirect exchange and the Wicksell triangle and discuss the frictions under which the need for fiat money arises. The internet and the digital technology have greatly reduced the costs of gathering and storing information and thus is able to compete with the traditional payment system in the future in the niche markets. It will be shown that in the case of crypto currencies, high price volatility undermines the store of value function of money and this factor.
Does Analyzing the Dynamics of Digital Currencies Help to Determine the Safe-Haven Crypto-Currency during the Covid-19 Outbreak?
Wajdi Moussa, investigated the dynamic behaviour of the crypto-currencies in order to better apprehend their possible safe-haven proprieties during the health crisis. The empirical findings clearly indicate asymmetric dynamics of digital currencies when facing against an extremely stressful and unpredictable event. This also indicates the different reactions of cryptocurrency markets to the increase of Covid-19 intensity during the period 01/09/2019-01/01/2021.
Artificial Intelligence: Companion to a New Human “Measure”?
René Schmidpeter and Christophe Funk, stated that new digital products, such as the Meta-Verse, are merging the real with the digital worlds and deepening the bonds between humans and technology. Today’s decisions on shaping the relationship between man and machine will also be relevant for our children and grandchildren. It is often the economic fields of application that influence the further development of technologies and their acceptance in society.
Mechanism of Cryptocurrencies-Accounting Ideas of Virtual Currencies
Violeta Maria ISAI & Mihai Aurelian, found that Blockchain technology is becoming more and more common today, being present in many fields such as Finance, IT or even Energy. However, both this new technology and the concept of cryptocurrencies is full of prejudice and information that are not well understood by the public. One of the first uses of blockchain technology was the most famous cryptocurrency, the Bitcoin.
The Role of Crypto Trading in the Economy, Renewable Energy Consumption and Ecological Degradation
Radosław Miśkiewicz & Krzysztof Matan & Jakub Karnowski, the digital transformations led to the development of cryptocurrency. This paper aims to analyse the connections between crypto trading, economic development of the country, renewable energy consumption, and environmental degradation. The findings concluded that the increasing crypto trading led to enhanced GDP, real gross fixed capital formation, and globalisation. However, in the long run, the relationship between crypto trading and the share of renewable energies in total energy consumption was not confirmed by the empirical results
Risk-aware energy management of a microgrid integrated with battery charging and swapping stations in the presence of renewable resources high penetration, crypto-currency miners and responsive loads:
Ahmadi Jirdehi, Mehdi & Sohrabi Tabar, The penetration of renewable resources and electric vehicles has increased in recent years due to various benefits such as reducing environmental pollution. It optimizes the energy management of a microgrid integrated with battery charging and swapping stations in the presence of renewable resources and crypto-currency miners as an emerging critical load with high energy consumption. In such structures, the fluctuation of renewable energies decreases reliability and increases energy market trading.
The Nexus between Cryptocurrencies, Currencies and Commodities: A Primer
This primer provides a pairwise comparison of cryptocurrency characteristics with those of fiat currency and hard commodities to shed light on the nexus between cryptocurrencies, fiat currency, and hard commodities. Then, it synthesizes methods and results from empirical research that investigate the nexus. The findings reveal that the existing literature has not reached a consensus on the nature of cryptocurrencies, in particular whether they should be categorized as a currency or a commodity which indicates the research area is not yet saturated.
Conclusion
Always remember the word the term “Bubble Burst”, this is what crypto is actually. The rapid growth of information technology and industrial revolutions provoked digital transformation of all sectors, from the government to households. . However, crypto trading provokes a dilemma loop. On the one hand, crypto trading led to economic development, which allowed attracting additional resources to extending smart and green technologies for de-carbonising the economic growth. On the other hand, crypto trading led to intensifying energy sources, which provoked an increase in greenhouse gas emissions and environmental degradation. One sees various images of man and society, from total surveillance of society and economy to the further development of human thinking in the form of new creativity, supported by the computing power of artifical intelligence. The above articles shows a significant positive (and increasing) influence of cryptocurrency activities on the energy consumption in both short-run and long-run the effects of residuals of the crypto-currencies trading volume on the residuals in energy consumption to confirm that a higher trading volume in cryptocurrencies might cause a higher energy consumption. Lately, its crypto volatility has been so excessive that it arguably cannot serve as a store of value. Therefore, a better understanding of the joint dynamics between the Covid-19 intensity and digital currencies involves figuring out the safe-haven features of some digital currencies. Overall, such findings can be interesting for helping the market participants who want to learn much more about the safe-haven role of crypto-currencies. The above paper focused to understand the cryptocurrency phenomenon and to explain it from a technical and economical point of view. Considering the speed with which the crypto system is changing, the technological evolution and the change in the way in which various states and regulatory authorities react to this phenomenon, the subject is one that is in full development from a technological and legislative point of view. It is the reason why this paper only covers a small part of the entire crypto universe. The reason why this theme will be debated is to inform the population about the simple and at the same time very volatile concept of virtual currencies. . Hence, the conditional value-at-risk index is utilized to analyze the risk of uncertainties. Furthermore, the influence of responsive local loads and incoming vehicles into the stations is investigated using demand response programs. In order to implement the presented programming, a real distribution network in Kermanshah, Iran, is selected as the case study. The results show that the risk-averse strategy with α = 0.85 and β = 0.8, reduces the expected revenue by about 636.355 $ compared to the risk-neutral strategy. In addition, the swapping station can be used as a bulk storage, where it stores about 43.56 MWh in low-price times and injects about 20.04 MWh in high-price times to support the local system. The demand side management also increases the revenue even under the worst-case conditions by about 79.623 $. In addition, notwithstanding bitcoin’s rising if bumpy credibility as a medium of exchange, since it has been immediately converted in either of the leading world currencies upon payment due to its extraordinary exchange rate volatility, bitcoin’s unit of account potential appears to be dubious too. . Nevertheless, technology that made it be may still spawn an evolution in the way we posses things, transfer ownership and pay for goods and services in the near IT-ridden future. And issues pertaining to money laundering and taxation prevents them to become a widespread form of money, though they will be used as a medium of exchange in the niche markets
References
1) Christophe Schinckus & Canh Phuc Nguyen & Felicia Chong Hui Ling, 2020,”Crypto-currencies Trading and Energy Consumption,” International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 355-364.<https://ideas.repec.org/a/eco/journ2/2020-03-45.html>
2) Mehmet Hasan Eken & Erkut Baloglu, 2017, “Crypto Currencies and their Destinies in the Future,” International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 6(4), pages 01-11, April. https://ideas.repec.org/a/rbs/ijfbss/v6y2017i4p01-11.html
3) Marko Malovic, 2014.”Demystifying Bitcoin: Sleight of Hand or Major Global Currency Alternative?,” Economic Analysis, Institute of Economic Sciences, vol. 47(1-2), pages 32 41. https://ideas.repec.org/a/ibg/eajour/v47y2014i1-2p32-41.html
4) Jalali-Naini, Seyed Ahmad Reza & Rabie Hamedani, Hasti, 2016.”Crypto Currencies and the Blockchain Technology: An Evolutionary Review of Money and the Payment Systems,” Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 11(3), pages 245-265, July.
https://ideas.repec.org/a/mbr/jmonec/v11y2016i3p245-265.html
5) Wajdi Moussa, 2022.”Does Analyzing the Dynamics of Digital Currencies Help to Determine the Safe-Haven Crypto-Currency during the Covid-19 Outbreak?,” International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 12(3), pages 58-74.<https://ideas.repec.org/a/ers/ijfirm/v12y2022i3p58-74.html>
6) René Schmidpeter & Christophe Funk, 2023. “Artificial Intelligence: Companion to a New Human “Measure”?,” CSR, Sustainability, Ethics & Governance, in: René Schmidpeter & Reinhard Altenburger (ed.),Responsible Artificial Intelligence, pages 9-15, Springer. https://ideas.repec.org/h/spr/csrchp/978-3-031-09245-9_2.html
7) Violeta Maria ISAI & Mihai Aurelian IRIMIA, 2023.”Mechanism of Cryptocurrencies-Accounting Ideas of Virtual Currencies,” Economics and Applied Informatics, “Dunarea de Jos” University of Galati, Faculty of Economics and Business Administration, issue 1, pages 105-113. <https://ideas.repec.org/a/ddj/fseeai/y2023i1p105-113.html>
8) Radosław Miśkiewicz & Krzysztof Matan & Jakub Karnowski, 2022. “The Role of Crypto Trading in the Economy, Renewable Energy Consumption and Ecological Degradation,” Energies, MDPI, vol. 15(10), pages 1-15, May.https://ideas.repec.org/a/gam/jeners/v15y2022i10p3805-d821066.html
9) Ahmadi Jirdehi, Mehdi & Sohrabi Tabar, Vahid, 2023. “Risk-aware energy management of a microgrid integrated with battery charging and swapping stations in the presence of renewable resources high penetration, crypto-currency miners and responsive loads,” Energy, Elsevier, vol. 263(PA).https://ideas.repec.org/a/eee/energy/v263y2023ipas0360544222026056.html
10) Siavash Taheri & Janelle Mann & Austin McWhirter, 2021.”The Nexus between Cryptocurrencies, Currencies and Commodities: A Primer,” World Scientific Book Chapters, in: Stéphane Goutte & Khaled Guesmi & Samir Saadi (ed.),Cryptofinance A New Currency for a New Economy, chapter 10, pages 191-206, World Scientific Publishing Co. Pte. Ltd. <https://ideas.repec.org/h/wsi/wschap/9789811239670_0010.html>