Sustainable energy practices and cryptocurrency market behavior

【Author】 Ben Omrane, Walid; Saadi, Samir; Savaser, Tanseli

【Source】ENERGY ECONOMICS

【影响因子】9.252

【Abstract】We examine the effects of energy usage on the return, volatility and jump processes in the Bitcoin (BTC) and Ethereum (ETH) markets. Our main finding indicates that while BTC returns respond significantly to changes in electricity consumption, the effect of electricity consumption on ETH returns is negligible. We attribute this discrepancy to BTC's relative energy inefficiency, which contrasts with ETH's commitment to transitioning to a more energy-efficient mining protocol over our sample period. Additionally, we show that the effect of electricity consumption on cryptocurrencies is mitigated by media coverage and policy uncertainty regarding the state of the economy, environment, and cryptocurrency markets. Our results suggest that when trading cryptocurrencies, investors consider their relative energy efficiency and price electricity consumption differently, highlighting the influence of the transition towards more sustainable energy practices on investor preferences and investment decisions in cryptocurrency markets.

【Keywords】Energy transition; Sustainable energy practices; Cryptocurrencies; Bitcoin; Ethereum

【发表时间】2024 NOV

【收录时间】2024-10-20

【文献类型】实证数据

【主题类别】

区块链治理-市场治理-市场分析