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Cryptocurrency network factors and gold

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  • Nakagawa, Kei
  • Sakemoto, Ryuta

Abstract

Both cryptocurrencies and gold are scarce, expensive for extraction, and less affected by money supply. We focus on these similarities and investigate whether cryptocurrency network affects impact on expected return on gold. Our results show that the number of cryptocurrency wallet users is positively related to the expected return on gold. Moreover, we employed a machine-learning approach and considered the interactions among predictors. We reveal that network factors have a greater impact on gold than returns on Bitcoin and other macroeconomic and financial variables.

Suggested Citation

  • Nakagawa, Kei & Sakemoto, Ryuta, 2022. "Cryptocurrency network factors and gold," Finance Research Letters, Elsevier, vol. 46(PB).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321003779
    DOI: 10.1016/j.frl.2021.102375
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    References listed on IDEAS

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    Cited by:

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    2. Sun, Xiaotong & Stasinakis, Charalampos & Sermpinis, Georgios, 2024. "Decentralization illusion in Decentralized Finance: Evidence from tokenized voting in MakerDAO polls," Journal of Financial Stability, Elsevier, vol. 73(C).
    3. Elsayed, Ahmed H. & Hoque, Mohammad Enamul & Billah, Mabruk & Alam, Md. Kausar, 2024. "Connectedness across meme assets and sectoral markets: Determinants and portfolio management," International Review of Financial Analysis, Elsevier, vol. 93(C).
    4. Waqas Hanif & Hee-Un Ko & Linh Pham & Sang Hoon Kang, 2023. "Dynamic connectedness and network in the high moments of cryptocurrency, stock, and commodity markets," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-40, December.

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