If GPU(time) == money: Sustainable crypto-asset market? Analysis of similarity among crypto-asset financial time series

Damian Zięba

International Review of Economics & Finance, 2024, vol. 89, issue PB, 863-912

Abstract: This study conducts a formal analysis of the price creation mechanisms of Proof-of-Work (PoW) and non-PoW crypto assets revealing that the long-term market trend aligns with the rising production cost of Bitcoin supply. Enabling the utilization of computational power for solving real-world problems, similar to data centers, would facilitate the sustainability of the crypto-asset market. On the other hand, Proof-of-Stake crypto assets may serve as a practical tool for managing the collaboration between startups and venture capitalists. The second part of the analysis proposes a co-movement measure, which might be more efficient than correlation metrics for analyzing the similarity between financial time series of returns.

Keywords: Cryptocurrency; Sustainability; Correlation; Co-movement; Network analysis (search for similar items in EconPapers)
JEL-codes: C14 F3 O3 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:89:y:2024:i:pb:p:863-912

DOI: 10.1016/j.iref.2023.10.036

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