IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v28y2021i5p408-412.html
   My bibliography  Save this article

The inefficiencies of bitcoins in developing countries

Author

Listed:
  • Heshan Sameera Kankanam Pathiranage
  • Huilin Xiao
  • Weifeng Li

Abstract

Cryptocurrency is an emerging phenomenon set to revolutionize the financial industry. It utilizes blockchain technology, which ensures data is immutable, transparent and reliable. Cryptocurrency is present in different forms like Blockchain and is present in most parts of the world. Developed nations have a significant interest in technology and have put a measure to investigate while developing nations are also following suit. The global interest in cryptocurrency is associated with the fact that the movement of money will be traceable and it will minimize activities such as money laundering and corruption. The paper analyzes a selected period of six years to establish the efficiency of the Blockchain in the markets. A graph and tables are essential in generating more data for interpretation of the events. The tests used in the analysis are the Ljung-box, R/S Hurst, BDS, Runs, AVR test, and Bartels tests. All the tests demonstrated inefficiencies in the Bitcoin trend, especially in the full sample and slightly low inefficiency in the later subsample. The conclusion made is that bitcoin will improve its efficiency over time as it is an emerging industry that needs to grow. Developing countries experience higher inefficiency combined with the prevalent policy challenges and issues like corruption and unemployment.

Suggested Citation

  • Heshan Sameera Kankanam Pathiranage & Huilin Xiao & Weifeng Li, 2021. "The inefficiencies of bitcoins in developing countries," Applied Economics Letters, Taylor & Francis Journals, vol. 28(5), pages 408-412, March.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:5:p:408-412
    DOI: 10.1080/13504851.2020.1757610
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2020.1757610
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2020.1757610?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Livia CEBOTARI, 2021. "Eu-Russian Economic Relations: From Cooperation To Confrontation," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8, pages 41-55, July.
    2. Almeida, José & Gonçalves, Tiago Cruz, 2023. "A systematic literature review of investor behavior in the cryptocurrency markets," Journal of Behavioral and Experimental Finance, Elsevier, vol. 37(C).
    3. Thipphavong, Viengsavang & Vanhnalat, Bounlert & Vidavong, Chanhphasouk & Bodhisane, Somdeth, 2022. "The Export Potential Of Laos Agri-Food To The Eu Market," PRCI Research Papers 324028, Michigan State University, Department of Agricultural, Food and Resource Economics, Food Security Group.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:28:y:2021:i:5:p:408-412. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.