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Cryptocurrency Derivatives: The Case of Bitcoin

In: Blockchain Economics and Financial Market Innovation

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  • Yakup Söylemez

    (Zonguldak Bülent Ecevit University)

Abstract

The effects of digitalization on the business ecosystem and business models are increasing day by day. Businesses and individuals intensely benefit from the services that FinTech platforms offer. As a result, there are significant changes in the structure of financial institutions and financial instruments. Blockchain technologies play an important role in the transformation of business ecosystems. In particular, cryptocurrencies are recognized by individuals, institutions, and governments as an economic asset. However, the high price volatility of cryptocurrencies shows that they have significant risks. Cryptocurrency derivatives are used to hedge against and benefit from price movements. This study aims to provide a basic framework for cryptocurrency derivatives. In this study, the most traded cryptocurrency type, Bitcoin derivatives, are used.

Suggested Citation

  • Yakup Söylemez, 2019. "Cryptocurrency Derivatives: The Case of Bitcoin," Contributions to Economics, in: Umit Hacioglu (ed.), Blockchain Economics and Financial Market Innovation, chapter 0, pages 515-530, Springer.
    • Handle: RePEc:spr:conchp:978-3-030-25275-5_25
    DOI: 10.1007/978-3-030-25275-5_25
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    References listed on IDEAS

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