Is It Possible to Understand the Dynamics of Cryptocurrency Markets Using Econophysics? Crypto-Econophysics

Tolga Ulusoy () and Mehmet Yunus Çelik ()
Additional contact information
Tolga Ulusoy: Kastamonu University, Kuzeykent Campus
Mehmet Yunus Çelik: Kastamonu University, Kuzeykent Campus

Chapter Chapter 12 in Blockchain Economics and Financial Market Innovation, 2019, pp 233-247 from Springer

Abstract: Abstract Closely related to the entire humanity, Finance, as a scientific field, seeks to meet humanity’s endless needs and to continue its race against time. While doing so, it also benefits from other branches of science. Since speed, reliability, accessibility are at the forefront of model structures, finance continuously improves itself and tries to achieve the best interaction with other disciplines. Financial physics, also known as Econophysics, has brought new statistical methods and insights into the studies. Since thermodynamic laws, one of the most frequently used simulation systems, can explain the basics of all physical movements, the crypto money market, the stock market, and the dynamics of the foreign exchange market have been introduced. Thermodynamics describes heat movements; explain internal energy of economic systems, heat and jobs created (also called wealth or profits), and open a new page in quantitative/qualitative Economic Research. In this study, following the second law of thermodynamics, the Carnot cycle was written with a new point of view from the question of whether the amount of work given to the system in the crypto currency reserve can explain the possible trading (exchange) prices that occur or are likely to occur with the exchange of money.

Date: 2019
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-030-25275-5_12

Ordering information: This item can be ordered from
http://www.springer.com/9783030252755

DOI: 10.1007/978-3-030-25275-5_12

Access Statistics for this chapter

More chapters in Contributions to Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().