Bitcoin mining activity and volatility dynamics in the power market

Karmakar, Sayar; Demirer, Riza; Gupta, Rangan

dc.contributor.author	Karmakar, Sayar
dc.contributor.author	Demirer, Riza
dc.contributor.author	Gupta, Rangan
dc.date.accessioned	2022-03-14T05:30:54Z
dc.date.available	2022-03-14T05:30:54Z
dc.date.issued	2021-12
dc.description.abstract	Utilizing a measure of the Bitcoin network’s daily electricity load, we document a significant volatility effect of Bitcoin mining activity in three prominent electricity markets in the U.S. The volatility effect is found to be increasing over time, particularly with the widespread lockdowns enforced due to the COVID-19 pandemic. The findings provide novel insight to the non-virtual side of mining and trading of cryptocurrencies and underscore the need for establishing mechanisms to prevent possible destabilizing effects of this growing industry, both from a power consumption and carbon emissions perspective.	en_ZA
dc.description.department	Economics	en_ZA
dc.description.librarian	hj2022	en_ZA
dc.description.uri	http://www.elsevier.com/locate/ecolet	en_ZA
dc.identifier.citation	Karmakar, S., Demirer, R. & Gupta, R. 2021, 'Bitcoin mining activity and volatility dynamics in the power market', Economics Letters, vol. 209, art. 110111, pp. 1-6, doi : 10.1016/j.econlet.2021.110111.	en_ZA
dc.identifier.issn	0165-1765 (print)
dc.identifier.issn	1873-7374 (online)
dc.identifier.other	10.1016/j.econlet.2021.110111
dc.identifier.uri	http://hdl.handle.net/2263/84463
dc.language.iso	en	en_ZA
dc.publisher	Elsevier	en_ZA
dc.rights	© 2021 Elsevier B.V. All rights reserved. Notice : this is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. A definitive version was subsequently published in Economics Letters, vol. , pp. , 2021. doi : 10.1016/j.econlet.2021.110111.	en_ZA
dc.subject	Time-varying	en_ZA
dc.subject	GARCH	en_ZA
dc.subject	Bitcoin	en_ZA
dc.subject	Electricity returns	en_ZA
dc.title	Bitcoin mining activity and volatility dynamics in the power market	en_ZA
dc.type	Preprint Article	en_ZA