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Does blockchain patent-development influence Bitcoin risk?

Hu, Yang, Hou, Yang (Greg) orcid logoORCID: 0000-0003-0017-9912, Oxley, Les orcid logoORCID: 0000-0003-3621-2323 and Corbet, Shaen orcid logoORCID: 0000-0001-7430-7417 (2020) Does blockchain patent-development influence Bitcoin risk? Journal of International Financial Markets, Institutions and Money, 70 . ISSN 1042-4431

The paper presents a novel analysis specifically investigating as to whether stocks associated with leading blockchain patent-developments influence the price volatility of Bitcoin across multiple time frequencies. It is important to further develop our understanding of the inter-dynamics between this relatively youthful financial product and pricing sensitivities associated with corporate technological advancement. Several interesting results are presented. First, Bitcoin is identified as a volatility receiver instead of a transmitter across all of the time frequencies considered during periods of patent development. Secondly, Microsoft, Mastercard, Intel and Visa contribute the largest volatility spillovers to the Bitcoin market due to patent development. Finally, for most of the companies considered, the calculated spillover effects towards Bitcoin markets are found to increase from the short-term to the long-term. These results suggest the existence of an avenue through which large corporations can influence cryptocurrency prices through their announcements of future technological intentions. The inherent risks incorporated with blockchain and cryptocurrency patent-development should be studied in detail, with particular warnings presented to those companies with no evidence of prior exposure and market knowledge.
Item Type:Article (Published)
Additional Information:Article number: 101263
Uncontrolled Keywords:Bitcoin; Cryptocurrency; Blockchain; Volatility; Spillovers; Contagion; Patents; Intellectual property
Subjects:Business > Finance
DCU Faculties and Centres:DCU Faculties and Schools > DCU Business School
Official URL:https://dx.doi.org/10.1016/j.intfin.2020.101263
Copyright Information:© 2020 The Authors. Open Access. (CC-BY-4.0)
ID Code:25924
Deposited On:28 May 2021 14:58 by Thomas Murtagh . Last Modified 09 Jun 2021 15:15

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