International audience ; The worldwide heightened economic uncertainty in countries like Venezuela, India, Britain, and Italy has strengthened more demand for Bitcoin. The deadlock between Greece and creditors doesn't seem to be going away and Greeks are very tired of the most punishing austerity measures connected to repayments of the loans. Greek people, who become increasingly mistrustful of their government, found solace in the Bitcoin as a refuge asset. The novelty of this paper lies in its methodological approach, which can pinpoint the dynamic effects of uncertainty surrounding the debt crisis on the interest in Bitcoin as an alternative to conventional and state-sanctioned banking system. Our findings confirm the great resilience of Bitcoin during periods of turmoil, highlighting its potential safe haven ability against uncertainty.
International audience ; The worldwide heightened economic uncertainty in countries like Venezuela, India, Britain, and Italy has strengthened more demand for Bitcoin. The deadlock between Greece and creditors doesn't seem to be going away and Greeks are very tired of the most punishing austerity measures connected to repayments of the loans. Greek people, who become increasingly mistrustful of their government, found solace in the Bitcoin as a refuge asset. The novelty of this paper lies in its methodological approach, which can pinpoint the dynamic effects of uncertainty surrounding the debt crisis on the interest in Bitcoin as an alternative to conventional and state-sanctioned banking system. Our findings confirm the great resilience of Bitcoin during periods of turmoil, highlighting its potential safe haven ability against uncertainty.
This paper applies recently developed procedures to monitor and date so-called "financial market dislocations", defined as periods in which substantial deviations from arbitrage parities take place. In particular, we focus on deviations from the triangular arbitrage parity for exchange rate triplets from a cointegration perspective. Due to increasing attention on and importance of mispricing in the market for cryptocurrencies, we include the cryptocurrency Bitcoin in addition to fiat currencies. We do not find evidence for substantial deviations from the triangular arbitrage parity when only traditional fiat currencies are concerned, but document significant deviations from triangular arbitrage parities in the newer markets for Bitcoin. We confirm the importance of our results for portfolio strategies by showing that a currency portfolio that trades based on our detected break-points outperforms a simple buy-and-hold strategy.
Cryptographic currencies have been thriving in the last 5 years, specially since the appearance of Bitcoin in 2009. Factors, as the particular advantages of this type of currency, the current economy conjecture and the evolution of technology are fuelling their popularity. In some countries, cryptographic currency systems are considered to be feasible alternatives to real money by the government and Bitcoin is actually being used in transactions worldwide. The success of Bitcoin is mostly due to its elegant mathematical description, proven security under its assumptions, its decentralized character and anonymity assurance. Apart from the initial effort to securely and correctly implement the system and of the maintenance of the applications, Bitcoin works automatically with the contribution of the nodes of a fully decentralized infrastructure. The full specification of the protocol is readily available, e.g., in the Internet, and it can be used by anyone. This masters programme explored the possibility to use it, with modifications, as a means to implement a system for electronic loyalty cards. In order to do so, the aforementioned cryptographic currency was studied in detail, a set of requirements for the new system and modifications to the original protocol were specified, and a software system was engineered and implemented in the Java programming language. The specification of the modifications was performed while taking the particular application scenario into account. The restrictions deriving from the application scenario were mostly dominated by the fact that the underlying Peer-to-Peer (P2P) infrastructure was to be constituted by smartphones only. The most visible outcome of this masters programme is the fully working prototype of the loyalty card system, comprised by an application for mobile devices and by a server side application. This prototype implements part of the Bitcoin from scratch, starting from the seminal work that defines it, along with the modifications that introduce a central agent for better controlling the quantity of currency per client and aid in the establishment of the P2P connections between two mobile applications. The modified version of the system is herein called Bitpoints, and the currency is instead constituted by points. The implemented loyalty card system benefits of some of the advantages of the popular cryptographic currency, namely the public access to the ledger for isolated verification of all transactions. The loyalty card permits the exchange of points between users and mining new points, which is fundamentally different than currently available loyalty cards. Within the context of this masters programme, a survey was delivery to a population constituted of 34 individuals, who answered a set of questions concerning the handling of the aforementioned prototype. The analysis of the obtained results allows to induce that people would feel comfortable with this application and accept the concept on which is based on, probably preferring a system similar to the proposed one. ; As moedas criptográficas têm vindo a prosperar nos últimos cinco anos, especialmente desde o aparecimento da Bitcoin em 2009. Fatores como as vantagens específicas deste tipo de moedas, a atual conjetura económica e a evolução tecnológica, estão a estimular a sua popularidade. Em alguns países, os sistemas monetários criptográficos são considerados pelo governo, alternativas viáveis ao dinheiro real e a Bitcoin está efetivamente a ser utilizada em transações por todo o mundo. O sucesso da Bitcoin é essencialmente baseado na sua elegante descrição matemática, segurança comprovada pelos seus princípios, pelo seu carácter descentralizado e pela garantia de anonimato. Para além do esforço inicial para implementar corretamente e de forma segura o sistema, e da manutenção das aplicações, a Bitcoin funciona automaticamente com a contribuição dos nós de uma infraestrutura descentralizada. A especificação completa do protocolo está facilmente disponível, por exemplo na Internet, e pode ser utilizada por qualquer pessoa. Este programa de mestrado explorou a possibilidade de usá-lo, com modificações, como uma forma de implementar um sistema de cartões de fidelização eletrónicos. De forma a fazer isso, a moeda criptográfica acima mencionada, foi estudada em detalhe, foram especificados um conjunto de requisitos para o novo sistema e modificações ao protocolo original, e um sistema em software foi projetado e implementado na linguagem de programação Java. A especificação das modificações foi realizada, tendo em conta o cenário desta aplicação em particular. As restrições resultantes do cenário da aplicação foram maioritariamente dominadas pelo fato de que a infraestrutura Peer-to-Peer (P2P) subjacente era constituída apenas por smartphones. O resultado mais visível deste programa de mestrado é o protótipo completamente funcional de um sistema de cartões de fidelização, composto por uma aplicação para dispositivos móveis, e outra para ser executada do lado do servidor. Este protótipo implementa de raiz, a parte do Bitcoin, a partir do trabalho seminal que o define, juntamente com as alterações que introduzem um agente central para controlar melhor a quantidade de moedas por cliente, e auxiliar no estabelecimento de ligações P2P entre duas aplicações móveis. A versão modificada do sistema é aqui chamada de Bitpoints e a moeda é em vez disso, constituída por pontos. Os benefícios da implementação deste sistema de cartões de fidelização, e de algumas das vantagens da popular moeda criptográfica são, nomeadamente o acesso público à cadeia de blocos para verificação isolada de todas as transações. O cartão de fidelização permite a troca de pontos entre utilizadores e novos pontos de mineração, que é fundamentalmente diferente dos cartões de fidelização atualmente disponíveis. Dentro do contexto deste programa de mestrado, foi distribuído um inquérito por uma população de 34 indivíduos, que responderam a um conjunto de questões relativas ao manuseamento do protótipo referido anteriormente. A análise dos resultados obtidos permitiu induzir que as pessoas se sentem confortáveis com a aplicação, e que aceitaram o conceito na qual esta é baseada, preferindo provavelmente um sistema semelhante ao proposto.
International audience ; We analyzed 23 mining pools and explore the mobility of miners throughout Bitcoin's history. Mining pools have emerged as major players to ensure that the Bitcoin system stays secure, valid, and stable. Many questions remain open regarding how mining pools have evolved throughout Bitcoin's history and when and why miners join or leave the pools. We investigated the reward payout flow of mining pools and characterized them based on payout irregularity and structural complexity. Based on our proposed algorithm, we identified miners and studied their mobility in the pools over time. Our analysis shows that Bitcoin mining is an industry that is sensitive to external events (e.g., market price and government policy). Over time, competition between pools involving reward schemes and pool fees motivated miners to migrate between pools (i.e., pool hopping and cross pooling). These factors converged toward optimal scheme and values, which made mining activities more stable.
International audience ; We analyzed 23 mining pools and explore the mobility of miners throughout Bitcoin's history. Mining pools have emerged as major players to ensure that the Bitcoin system stays secure, valid, and stable. Many questions remain open regarding how mining pools have evolved throughout Bitcoin's history and when and why miners join or leave the pools. We investigated the reward payout flow of mining pools and characterized them based on payout irregularity and structural complexity. Based on our proposed algorithm, we identified miners and studied their mobility in the pools over time. Our analysis shows that Bitcoin mining is an industry that is sensitive to external events (e.g., market price and government policy). Over time, competition between pools involving reward schemes and pool fees motivated miners to migrate between pools (i.e., pool hopping and cross pooling). These factors converged toward optimal scheme and values, which made mining activities more stable.
International audience ; We analyzed 23 mining pools and explore the mobility of miners throughout Bitcoin's history. Mining pools have emerged as major players to ensure that the Bitcoin system stays secure, valid, and stable. Many questions remain open regarding how mining pools have evolved throughout Bitcoin's history and when and why miners join or leave the pools. We investigated the reward payout flow of mining pools and characterized them based on payout irregularity and structural complexity. Based on our proposed algorithm, we identified miners and studied their mobility in the pools over time. Our analysis shows that Bitcoin mining is an industry that is sensitive to external events (e.g., market price and government policy). Over time, competition between pools involving reward schemes and pool fees motivated miners to migrate between pools (i.e., pool hopping and cross pooling). These factors converged toward optimal scheme and values, which made mining activities more stable.
International audience ; We analyzed 23 mining pools and explore the mobility of miners throughout Bitcoin's history. Mining pools have emerged as major players to ensure that the Bitcoin system stays secure, valid, and stable. Many questions remain open regarding how mining pools have evolved throughout Bitcoin's history and when and why miners join or leave the pools. We investigated the reward payout flow of mining pools and characterized them based on payout irregularity and structural complexity. Based on our proposed algorithm, we identified miners and studied their mobility in the pools over time. Our analysis shows that Bitcoin mining is an industry that is sensitive to external events (e.g., market price and government policy). Over time, competition between pools involving reward schemes and pool fees motivated miners to migrate between pools (i.e., pool hopping and cross pooling). These factors converged toward optimal scheme and values, which made mining activities more stable.
International audience ; We analyzed 23 mining pools and explore the mobility of miners throughout Bitcoin's history. Mining pools have emerged as major players to ensure that the Bitcoin system stays secure, valid, and stable. Many questions remain open regarding how mining pools have evolved throughout Bitcoin's history and when and why miners join or leave the pools. We investigated the reward payout flow of mining pools and characterized them based on payout irregularity and structural complexity. Based on our proposed algorithm, we identified miners and studied their mobility in the pools over time. Our analysis shows that Bitcoin mining is an industry that is sensitive to external events (e.g., market price and government policy). Over time, competition between pools involving reward schemes and pool fees motivated miners to migrate between pools (i.e., pool hopping and cross pooling). These factors converged toward optimal scheme and values, which made mining activities more stable.
