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Book part
Publication date: 21 May 2021

Serdar Ögel and İlkin Yaran Ögel

Introduction: As internet and communication technologies are getting developed, the commercial transaction is becoming more electronic. This change also brings new approaches to…

Abstract

Introduction: As internet and communication technologies are getting developed, the commercial transaction is becoming more electronic. This change also brings new approaches to new payment mechanisms like emergence of crypto currencies. They are virtual and digital currencies which can only be used in electronic environment but they are increasingly treated as a new payment and investment tool. Nevertheless, their use has not spread into the general public, yet. At this point, it will better to take the complex nature of the crypto currencies into consideration because it may still lead to some risks for people and the type of the risks perceived by consumers may influence their attitudes toward and intention to use crypto currencies.

Aim: Accordingly, this study attempts to examine the interaction between perceived risk, attitudes toward and intention to use crypto currencies within the context of Bitcoin, as the first crypto currency.

Method: This study was designed as a causal research. The sample of the study was reached by using convenience sampling method and data were collected with survey. The compiled data were tested with Structural Equation Model.

Findings: A statistically significant and negative relationship was found between perceived financial, time and psychological risk and attitudes toward the use of Bitcoin, and a statistically significant and positive relationship was found between attitudes toward and intention to use Bitcoin. The findings of the study are expected to contribute to both relevant literature and practice by explaining the financial behavior of the individuals within the context of perceived risk theory.

Details

New Challenges for Future Sustainability and Wellbeing
Type: Book
ISBN: 978-1-80043-969-6

Keywords

Article
Publication date: 9 October 2019

Saeed Rouhani and Ehsan Abedin

Crypto-currencies, decentralized electronic currencies systems, denote a radical change in financial exchange and economy environment. Consequently, it would be attractive for…

Abstract

Purpose

Crypto-currencies, decentralized electronic currencies systems, denote a radical change in financial exchange and economy environment. Consequently, it would be attractive for designers and policy-makers in this area to make out what social media users think about them on Twitter. The purpose of this study is to investigate the social opinions about different kinds of crypto-currencies and tune the best-customized classification technique to categorize the tweets based on sentiments.

Design/methodology/approach

This paper utilized a lexicon-based approach for analyzing the reviews on a wide range of crypto-currencies over Twitter data to measure positive, negative or neutral sentiments; in addition, the end result of sentiments played a training role to train a supervised technique, which can predict the sentiment loading of tweets about the main crypto-currencies.

Findings

The findings further prove that more than 50 per cent of people have positive beliefs about crypto-currencies. Furthermore, this paper confirms that marketers can predict the sentiment of tweets about these crypto-currencies with high accuracy if they use appropriate classification techniques like support vector machine (SVM).

Practical implications

Considering the growing interest in crypto-currencies (Bitcoin, Cardano, Ethereum, Litcoin and Ripple), the findings of this paper have a remarkable value for enterprises in the financial area to obtain the promised benefits of social media analysis at work. In addition, this paper helps crypto-currencies vendors analyze public opinion in social media platforms. In this sense, the current paper strengthens our understanding of what happens in social media for crypto-currencies.

Originality/value

For managers and decision-makers, this paper suggests that the news and campaign for their crypto in Twitter would affect people’s perspectives in a good manner. Because of this fact, the firms, investing in these crypto-currencies, could apply the social media as a magnifier for their promotional activities. The findings steer the market managers to see social media as a predictor tool, which can analyze the market through understanding the opinions of users of Twitter.

Details

International Journal of Ethics and Systems, vol. 36 no. 1
Type: Research Article
ISSN: 2514-9369

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Article
Publication date: 10 May 2019

Anwar Hasan Abdullah Othman, Syed Musa Alhabshi and Razali Haron

This paper aims to examine whether the crypto-currencies’ market returns are symmetric or asymmetric informative, through analysing the daily logarithmic returns of bitcoin…

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Abstract

Purpose

This paper aims to examine whether the crypto-currencies’ market returns are symmetric or asymmetric informative, through analysing the daily logarithmic returns of bitcoin currency over the period of 2011-2017.

Design/methodology/approach

In doing so, the symmetric informative analysis is estimated by applying the generalised auto-regressive conditional heteroscedasticity (GARCH) (1,1) model, whereas asymmetric informative or leverage effects analysis is estimated by exponential GARCH (1,1), asymmetric power ARCH (1,1) and threshold GARCH (1,1) models. In addition, the generalized autoregressive conditional heteroskedasticity in mean (GARCH-M (1,1)) was applied to examine whether the risk-return trade-off phenomenon was persistent in crypto-currencies market.

Findings

The main findings indicate that bitcoin market return or volatility is symmetric informative and has a long memory to persist in the future. Furthermore, the sympatric volatility is found to be more sensitive to its past values (lagged) than to the new shock of the market values. However, asymmetric informative response of volatility to the negative and the positive shocks do not exist in the bitcoin market or, in other words, there is no leverage effect. This suggests that the bitcoin market is in harmony with the efficient market hypothesis (EMH) with respect to the asymmetric information and violated the EMH with regard to the symmetric information. Hence, the market price or return of bitcoin currency could not be predicted by simply exercising such past market information in the short-run investment. In addition, the estimated coefficient of conditional variance or risk premium (λ) in the mean equation of CHARCH–M (1,1) model is positive however, statistically insignificant. This indicates the absence of risk-return trade-off, in which case the higher market risk will not essentially lead to higher market returns. This paper has proposed that an investment in the crypto-currency market is more appropriate for risk-averse investors than risk takers.

Originality/value

The findings of the study will provide investors with necessary information about the bitcoin market price efficiency, hedging effectiveness and risk management.

Details

Journal of Financial Economic Policy, vol. 11 no. 3
Type: Research Article
ISSN: 1757-6385

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Article
Publication date: 3 October 2016

Angela S.M. Irwin and George Milad

The purpose of this paper is to look at current discourse on the topic of crypto-currencies, more specifically Bitcoins, and their application to funding acts of terror. The paper…

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Abstract

Purpose

The purpose of this paper is to look at current discourse on the topic of crypto-currencies, more specifically Bitcoins, and their application to funding acts of terror. The paper clearly establishes the risks posed by this new payment technology and value transfer system to assist in the process of funding, planning and implementing acts of terror.

Design/methodology/approach

Publications, blogs and sites published and administered by terrorists groups and their supporters are examined to determine their interest in leveraging emerging payment and value transfer systems to facilitate the funding, planning and implementation of terror attacks. Press releases and other publications are also examined to determine whether crypto-currencies have been used by these groups in fund raising, fund transfer or recent terror attacks.

Findings

Although it is difficult to find concrete evidence of largescale use of Bitcoins and other crypto-currencies by terrorist groups and their supporters, there is strong evidence to suggest that they have been linked to a number of terror attacks in Europe and Indonesia. Supporters of Islamic State of Iraq and Syria (ISIS), jihadists and terrorist organisations are actively looking to and promoting the use of new and emerging technologies, such as Bitcoin, to mitigate some of the risks associated with traditional fund transfer methods. Some websites associated with terrorist organisations have started to collect donations in Bitcoins. Many Bitcoin ATMs and Bitcoin exchanges are located in countries that have seen significant numbers of foreign fighters join ISIS in the Middle East and are also positioned in countries that have seen increased risk of terror attack. These present a significant risk because they allow for the seamless, anonymous transfer of funds to and from terrorist groups and their supporters. The paper highlights the need for further in-depth research into reliable ways to circumvent the current difficulties experienced in differentiating illicit transactions from legitimate ones and establishing reliable means of attribution.

Originality/value

Using a document published by ISIS, which provides would-be jihadists detailed instructions on how they can get to Syria or Iraq without being detected, a set of models were created showing how this could be achieved using Bitcoins alone. From this scenario, red flag indicators and suspicious behaviour models have been created to determine whether they can be identified during detailed analysis of the Bitcoin blockchain which will be conducted in later stages of research.

Details

Journal of Money Laundering Control, vol. 19 no. 4
Type: Research Article
ISSN: 1368-5201

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Article
Publication date: 12 July 2019

Ikhlaas Gurrib

The purpose of this paper is to shed fresh light into whether an energy commodity price index (ENFX) and energy blockchain-based crypto price index (ENCX) can be used to predict…

Abstract

Purpose

The purpose of this paper is to shed fresh light into whether an energy commodity price index (ENFX) and energy blockchain-based crypto price index (ENCX) can be used to predict movements in the energy commodity and energy crypto market.

Design/methodology/approach

Using principal component analysis over daily data of crude oil, heating oil, natural gas and energy based cryptos, the ENFX and ENCX indices are constructed, where ENFX (ENCX) represents 94% (88%) of variability in energy commodity (energy crypto) prices.

Findings

Natural gas price movements were better explained by ENCX, and shared positive (negative) correlations with cryptos (crude oil and heating oil). Using a vector autoregressive model (VAR), while the 1-day lagged ENCX (ENFX) was significant in estimating current ENCX (ENFX) values, only lagged ENCX was significant in estimating current ENFX. Granger causality tests confirmed the two markets do not granger cause each other. One standard deviation shock in ENFX had a negative effect on ENCX. Weak forecasting results of the VAR model, support the two markets are not robust forecasters of each other. Robustness wise, the VAR model ranked lower than an autoregressive model, but higher than a random walk model.

Research limitations/implications

Significant structural breaks at distinct dates in the two markets reinforce that the two markets do not help to predict each other. The findings are limited by the existence of bubbles (December 2017-January 2018) which were witnessed in energy blockchain-based crypto markets and natural gas, but not in crude oil and heating oil.

Originality/value

As per the authors’ knowledge, this is the first paper to analyze the relationship between leading energy commodities and energy blockchain-based crypto markets.

Details

Studies in Economics and Finance, vol. 36 no. 3
Type: Research Article
ISSN: 1086-7376

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Article
Publication date: 19 March 2024

Yousra Trichilli, Hana Kharrat and Mouna Boujelbène Abbes

This paper assesses the co-movement between Pax gold and six fiat currencies. It also investigates the optimal time-varying hedge ratios in order to examine the properties of Pax…

Abstract

Purpose

This paper assesses the co-movement between Pax gold and six fiat currencies. It also investigates the optimal time-varying hedge ratios in order to examine the properties of Pax gold as a diversifier and hedge asset.

Design/methodology/approach

This paper examines the volatility spillover between Pax gold and fiat currencies using the framework of wavelet analysis, BEKK-GARCH models and Range DCC-GARCH. Moreover, this paper proposes to use the covariance and variance structure obtained from the new range DCC-GARCH framework to estimate the time-varying optimal hedge ratios, the optimal weighs and the hedging effectiveness.

Findings

Wavelet coherence method reveals that, at low frequency, large zone of co-movements appears for the pairs Pax gold/EUR, Pax gold/JPY and Pax gold/RUB. Further, the BEKK results show unidirectional (bidirectional) transmission effects between Pax gold and EUR, GBP, JPY and CNY (INR, RUB) fiat currencies. Moreover, the Range DCC results show that the Pax gold and the fiat currency returns are weakly correlated with low coefficients close to zero. Thus, Pax gold seems to serve as a safe haven asset against the systematic risk of fiat currency markets. In addition, the results of optimal weights show that rational investor should invest more in Pax gold and less in fiat currencies. Concerning the hedge ratios results, the findings reveal that the INR (JPY) fiat currency appears to be the most expensive (cheapest) hedge for the Pax-gold market. However, the JPY’s fiat currency appears to be the cheapest one. As for hedging effectiveness results, the authors found that hedging strategies including fiat currencies–Pax gold pairs are most likely to sharply decrease the portfolio’s risk.

Practical implications

A comprehensive understanding of the relationship between Pax Gold and fiat currencies is crucial for refining portfolio strategies involving cryptocurrencies. This research underscores the significance of grasping volatility transmissions between these currencies, providing valuable insights to guide investors in their decision-making processes. Moreover, it encourages further exploration into the interdependencies of digital currencies. Additionally, this study sheds light on effective contagion risk management, particularly during crises such as Covid-19 and the Russia–Ukraine conflict. It underscores the role of Pax Gold as a safe-haven asset and offers practical guidance for adjusting portfolios across various economic conditions. Ultimately, this research advances our comprehension of Pax Gold’s risk-return profile, positioning it as a potential hedge during periods of uncertainty, thereby contributing to the evolving literature on cryptocurrencies.

Originality/value

This study’s primary value lies in its pioneering empirical examination of the time-varying correlations and scale dependence between Pax Gold and fiat currencies. It goes beyond by determining optimal time-varying hedge ratios through the innovative Range-DCC-GARCH model, originally introduced by Molnár (2016) and distinguished by its incorporation of both low and high prices. Significantly, this analysis unfolds within the unique context of the Covid-19 pandemic and the Russian–Ukrainian conflict, marking a novel contribution to the field.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

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Open Access
Article
Publication date: 23 July 2020

Amol Thakre, Fadi Thabtah, Seyed Reza Shahamiri and Suhel Hammoud

Bitcoin is among the highest rated digital crypto-currency in financial investment markets. This technology relies on a backbone of distributed data architecture and peer-to-peer…

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Abstract

Bitcoin is among the highest rated digital crypto-currency in financial investment markets. This technology relies on a backbone of distributed data architecture and peer-to-peer networking model called Blockchain. Unlike the current digital economy, which is governed centrally by financial institution or governments, Blockchain is fully autonomous without any third-party involvement. The exorbitant success of Bitcoin has attracted investors, scholars as well as organizations to peek into this lucrative technology for the possible application to other areas apart from crypto-currency. Blockchain can adopt Smart Contracts, which are digitally enabled contracts that can be executed and enforced fully or partially using pre-defined notions. The aim of this research is to investigate the synergy between Smart Contract and Blockchain to propose a digital framework for an academic paper publication model that has the capability to automate the entire process and challenge the existing system. It can also bring together all the stakeholders under the same system. The proposed model can further hold the stakeholders accountable for breach of contracts and/or reward them for executing the successes of terms pre-configured in the Smart Contract. The proposed model, called Digital Smart Publication or DSP (as referred in the document), is highly secure and ensures balance in distributing rewards to the involved stakeholders while keeping data integrity and security as paramount features.

Details

Applied Computing and Informatics, vol. 18 no. 3/4
Type: Research Article
ISSN: 2634-1964

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Article
Publication date: 8 February 2022

Ambareen Beebeejaun and Lubnaa Dulloo

Indeed, the value of money laundering globally is between 2% and 5% of the world’s gross domestic product, which represents $800bn to $2tn per year. There is therefore a dire and…

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Abstract

Purpose

Indeed, the value of money laundering globally is between 2% and 5% of the world’s gross domestic product, which represents $800bn to $2tn per year. There is therefore a dire and urgent need to curb money laundering offences at both national and international level. As such, the purposes of this research are to critically analyse the anti-money laundering (AML) laws and regulations of Mauritius, to identify loopholes in inherent in the Mauritian system and to suggest recommendations to enhance the AML laws in the country.

Design/methodology/approach

To achieve these research objectives, the study will adopt the black letter methodology by analysing laws and regulations on AML of Mauritius and will also conduct a comparative analysis against the corresponding AML laws of South Africa. In fact, South Africa has been selected for the comparison to assess how Africa’s most powerful economic powerhouse is dealing with issues of money laundering and whether Mauritius may implement some of these measures to enhance its legal and regulatory framework on AML.

Findings

The research sets out a comprehensive view on the AML legislative framework of South Africa and Mauritius. It has highlighted the mechanisms used in these two countries to combat money laundering is the risk-based approach. Finally, recommendations have been proposed to improve the existing AML frameworks of Mauritius and which can further protect the financial system of the country. However, these suggestions will depend on the evolution of financial crimes within and outside the jurisdiction, and ongoing amendments will always be required to rigidly protect Mauritius from money launderers.

Originality/value

At present, to the best of the authors’ knowledge, this study will be amongst the first academic writings on the effectiveness of the legal and regulatory measures undertaken by the Mauritian authorities to deal with AML crimes in the country. The study is carried out with the aim of combining a large amount of empirical, theoretical and factual information that can be of use to various stakeholders and not only to academics.

Details

Journal of Money Laundering Control, vol. 26 no. 2
Type: Research Article
ISSN: 1368-5201

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Article
Publication date: 27 July 2023

Ayman Abdalmajeed Alsmadi, Ahmed Shuhaiber and Khaled Saleh Al-Omoush

The purpose of this paper is to investigate the determinants of users' intention to continue to invest in cryptocurrencies. The paper also aims to examine the impact of hedonic…

Abstract

Purpose

The purpose of this paper is to investigate the determinants of users' intention to continue to invest in cryptocurrencies. The paper also aims to examine the impact of hedonic motivation and the legal environment on perceived value in cryptocurrencies.

Design/methodology/approach

A questionnaire was designed to obtain data from 258 respondents in UAE. The Structural Equation Modeling – Partial Least Squares (SEM-PLS) was used to evaluate the research model and test the hypotheses.

Findings

The results of smart PLS path analysis showed that perceived value, hedonic motivation, gambling attitude, and price volatility were significant determinants of the continued intention to invest in cryptocurrency. This study also revealed that hedonic motivation enhances perceived value and improves the perception of cryptocurrencies value from user's perspective.

Originality/value

This study provides new insights into the literature on cryptocurrencies adoption, and delivers advanced understanding about the determinants of user's intention to continue investing in cryptocurrencies. In addition, the study provides important practical implications for cryptocurrencies companies to promote this financial technology to users by enhancing the knowledge of policy makers about how investors think and get motivated towards a continued investment of cryptocurrencies.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

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Article
Publication date: 4 April 2023

Samir Daoud Baidoun, Mohammed Zedan Salem and Ralf Wagner

This paper aims to identify the factors affecting university students’ behavioral intentions towards adopting the new Facebook currency while controlling for the direct and the…

Abstract

Purpose

This paper aims to identify the factors affecting university students’ behavioral intentions towards adopting the new Facebook currency while controlling for the direct and the moderating impacts of narcissism.

Design/methodology/approach

A self-administered questionnaire of 344 respondents from six major Palestinian universities was analyzed. The structural model is fitted for assessing the hypothesized relations.

Findings

Findings indicate that the effect of Facebook advertisement in predicting the behavioral intentions to adopt the new Facebook currency relies on: privacy, security, the expectations in the new Facebook currency and knowledge about the targeting options within the Facebook platform. Moreover, the moderating role of narcissism supported the relationships between perceived privacy, the expectations in the new Facebook currency and knowledge about the targeting options within the Facebook platform but did not support the moderating role of narcissism in the relationships between perceived security and the behavioral intentions.

Research limitations/implications

In this study, only the Facebook platform and the behavioral intention were investigated with data collected from Palestinian University students through self-reported cross-sectional survey.

Practical implications

This study adds insight on the moderating role of narcissism in predicting the behavior intentions towards adopting the new Facebook currency (Diem) which has a substantial potential to threaten all other crypto currencies and the other alternatives. Therefore, managers should consider altering or adapting their Facebook advertising tactics accordingly.

Originality/value

This study is the first to contribute through empirical evidence from a developing country to theory building the results of clarifying the propensity to adopt the new Facebook currency, outlining the consumers’ reaction to social media advertising and its influential factors and providing evidence proving relevance of narcissism for non-Western users.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/OIR-12-2021-0666

Details

Online Information Review, vol. 47 no. 7
Type: Research Article
ISSN: 1468-4527

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