Multifractal and Cross-correlation Analysis of Cryptocurrencies for Direct Green Investments

Ivan Udalov (), Almakul Abdimomynova () and Svetlana Moldagulova ()
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Ivan Udalov: Financial University Under the Government of the Russian Federation
Almakul Abdimomynova: Korkyt Ata Kyzylorda University
Svetlana Moldagulova: Korkyt Ata Kyzylorda University

Chapter Chapter 12 in Circular Economy and the Energy Market, 2022, pp 147-158 from Springer

Abstract: Abstract The article contains a comprehensive study of cryptocurrencies and digital currencies (crypto-yuan, bitcoin, ethereum, TRON, and Tether). Using the MF-X-DMA and DMCA methods, a statistical study of the 5-year dynamics of the closing prices in US dollars of the Chinese yuan and the above cryptocurrencies was carried out, which is part of the multifractal and cross-correlation analysis. The result of the study was to identify the relationship between the price dynamics of the Chinese yuan, ethereum, and TRON. The further analytical study and comparison of the characteristics of the objects, the study allowed us to conclude that the wider distribution of the digital version of the Chinese yuan in the international space may hypothetically affect the rate of TRON, Ethereum, and some other similar cryptocurrencies, the structure of which is based on their platforms. In addition, the results of the study suggest that the spread of the crypto-yuan will affect the platforms for international transfers in yuan, as well as affect the volume of settlements in the Chinese currency. The evolution of economic systems at the beginning of the twenty-first century led to the emergence of a new type of financial assets, which can be designated as digital “currency.” Since the appearance of the first cryptocurrency, called Bitcoin, a lot of scientific research has been carried out concerning the nature of this phenomenon in the economy, its dynamics in financial markets, as well as the impact on economic systems in general. Most of the cryptocurrencies are based on the principle of decentralized emission, and their proliferation forced central banks to develop a set of measures to regulate the market for these assets. Several governments have adopted more stringent measures, limiting or prohibiting their circulation and use. As the study of cryptocurrencies, as well as their distribution, the positions of financial regulators changed. Few central banks have softened the conditions for the circulation of cryptocurrencies to achieve their own goals in monetary policy, while others have announced their intention to create their own counterparts. List of initiators includes the People’s Bank of China and the Bank of England.

Keywords: Cryptocurrencies; People’s Bank of China; CBDC; Bitcoin; Ethereum; TRON; Yuan; DCEP (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-031-13146-2_12

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DOI: 10.1007/978-3-031-13146-2_12

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