Review of Professional Management

The Economics of Cryptocurrencies: Finance in Digital Era

Isha Narula¹ and Kriti Dhingra¹

First Published 9 Jan 2023. https://doi.org/10.1177/09728686221144176

Article Information

Volume 20, Issue 2 December 2022

Corresponding Author:

Isha Narula, Vivekananda Institute of Professional Studies, Pitampura, Delhi 110034, India.
Email: isha.narula.11@gmail.com

¹ Vivekananda Institute of Professional Studies, Pitampura, Delhi, India

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (http://www.creativecommons.org/licenses/by-nc/4.0/) which permits non-Commercial use, reproduction and distribution of the work without further permission provided the original work is attributed.

Abstract

Global economic markets are encountering apprehensions and susceptibilities after the pandemic of COVID-19. Investment patterns are becoming restrained because of uncertain global scenarios and reduced GDP worldwide. World economies are moving towards digital era and investors are becoming more open towards the newest forms of investments. Due to the uncertain scenarios, investors globally are looking forward to some lucrative forms of investments and cryptocurrencies are the ray of hope for global investors. The present study is attempt to explore the changing dynamics of cryptocurrencies with the market uncertainties. Volatility of five cryptocurrencies, namely Bitcoin, Ethereum, XRP, Chainlink and Bitcoin Cash are analysed using the Generalised AutoRegressive Conditional Heteroskedasticity Model. Results showed that the investors preferred taking cautious decisions and invested more in famous bitcoin rather than other cryptocurrencies.

Keywords

Cryptocurrency, volatility, GARCH, spillover

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