Blockchain and Market Dynamics: Correlation between Cryptocurrency Valuations and Market Interest Rates

Year 2023, , 1100 - 1110, 30.10.2023

Saadet Karadağ , Aysun Atagan Çetin

https://doi.org/10.26466/opusjsr.1342992

Abstract

In this study, the five most well-known cryptocurrencies in the blockchain-based decentralized financing structure were compared with the centralized market interest rates, and it was examined whether there is a significant relationship between the changes in market interest rates and the prices of cryptocurrencies. Key findings indicate a significant relationship between most cryptocurrencies, such as Dash, Litecoin, Ethereum, and Bitcoin, with market interest rates. However, XRP emerges as an exception. In addition to the comparative analysis between cryptocurrencies and market interest rates, this study delves into the underlying mechanisms that govern these relationships. It explores the role of blockchain technology in shaping the decentralized financing structure and highlights the intricacies of various cryptographic algorithms. The research also emphasizes the need for specialized accounting practices that cater to the unique challenges posed by cryptocurrencies. This study bridges the understanding between conventional economic mechanisms and the innovative world of cryptocurrencies, offering inferences that are important for investors, financial analysts, and accountants in the digital age.

Keywords

Blockchain, Market Interest Rate, Financial Accounting

Blok Zinciri, Kripto Para Muhasebesi ve Piyasa Dinamikleri: Kripto Para Değerlemeleri ve Piyasa Faiz Oranları Arasındaki Korelasyon

Abstract

Bu çalışmada, blok zinciri tabanlı merkezi olmayan finansman yapısındaki en bilinen beş kripto para birimi, merkezi piyasa faiz oranları ile karşılaştırılmış ve piyasa faiz oranlarındaki değişimler ile kripto para birimlerinin fiyatları arasında anlamlı bir ilişki olup olmadığı incelenmiştir. Temel bulgular Dash, Litecoin, Ethereum ve Bitcoin gibi çoğu kripto para birimi ile piyasa faiz oranları arasında anlamlı bir ilişki olduğunu göstermektedir. Ancak XRP bir istisna olarak ortaya çıkmaktadır. Kripto para birimleri ve piyasa faiz oranları arasındaki karşılaştırmalı analize ek olarak, bu çalışma bu ilişkileri yöneten altta yatan mekanizmaları araştırmaktadır. Blok zinciri teknolojisinin merkezi olmayan finansman yapısını şekillendirmedeki rolünü araştırmakta ve çeşitli kriptografik algoritmaların inceliklerini vurgulamaktadır. Araştırma ayrıca kripto para birimlerinin yarattığı benzersiz zorlukları karşılayan özel muhasebe uygulamalarına duyulan ihtiyacı da vurgulamaktadır. Bu çalışma, geleneksel ekonomik mekanizmalar ile kripto paraların yenilikçi dünyası arasında bir köprü kurarak dijital çağda yatırımcılar, finansal analistler ve muhasebeciler için önemli çıkarımlar sunmaktadır.

Keywords

Blok Zinciri, Piyasa Faiz Oranı, Finansal Muhasebe

References

• Altuntaş, Ö. (2012). Merkez Bankası Bağımsızlığı: Avrupa Merkez Bankası ve Türkiye Cumhuriyet Merkez Bankası Karşılaştırması. Pamukkale Üniversitesi Sosyal Bilimler Enstitüsü Dergisi (12), 73-84.
• Belongia, M. T. (1987). Predicting Interest Rates: A Comparison of Professional and Market- based Forecasts. Canadian Parliamentary Review, 69, 9-15.
• Brooke, M. J., Cooper, N., & Scholtes, C. (2000). Inferring Market Interest Rate Expectations from Money Market Rates.
• Chatterjee, R., & Chatterjee, R. (2017). An Overview of the Emerging Technology: Blockchain. 2017 3rd. International Conference on Computational Intelligence and Networks (CINE), 126-127.
• Çetin, O. (2022). Kurumsal Şeffaflığın Sağlanmasında Blok Zinciri Teknolojisinin Önemine Yönelik Bütünleştirici Bir Yaklaşım.
• Dale, S. (2010). The Effect of Changes in Official U.K. Rates on Market Interest Rates since 1987. The Manchester School, 61, 76-94.
• Demirgil, B., & Türkay, H. (2017). Tarihsel Süreç İçerisinde Faiz Olgusunun Kuramsal Açıdan Gelişimi. Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi, 18(2), 131-160.
• Erdoğan, S., & Bodur, D. (2020). Blockchain Teknolojisi ve Günümüz Finansal Sistemine Olası Etkileri. Mali Çözüm Dergisi, 30, 281-295.
• Fermo, L. B. (2016). Policy Rate Divergence in the ASEAN-4: Impact of Global Risk Perception and Financial Market Characteristics. Theoretical and Practical Research in Economic Fields (TPREF), 7(13), 30-52.
• Fu, X., Li, M. C., & Molyneux, P. (2021). Credit Default Swap Spreads: Market Conditions, Firm Performance, and the Impact of the 2007–2009 Financial Crisis. Empirical Economics, 60, 2203-2225.
• George, D. (2011). SPSS for Windows Step by Step: A Simple Study Guide and Reference, 17.0 update, 10/e: Pearson Education India.
• Ghasemi, A., & Zahediasl, S. (2012). Normality Tests for Statistical Analysis: A Guide for Non-statisticians. International Journal of Endocrinology and Metabolism, 10(2), 486.
• Jiang, H. (2023). Application Analysis of Cryptography in Blockchain. Paper presented at the International Symposium on Computer Engineering and Intelligent Communications.
• Junejo, A. Z., Memon, M. M., Junejo, M. A., Talpur, S., & Memon, R. M. (2020). Blockchains Technology Analysis: Applications, Current Trends and Future Directions—An Overview.
• Kamal, Z. A., & Fareed, R. (2021). A Proposed Hash Algorithm to Use for Blockchain Base Transaction Flow System. Periodicals of Engineering and Natural Sciences (PEN).
• Kartal, M. T. (2019). Türkiye’de Referans (Gösterge) Faiz Oluşturulması: Türk Lirası Gecelik Referans Faiz Oranı (TLREF) Üzerine Bir İnceleme [Launching Reference (Benchmark) Interest Rate in Turkey: A Conceptual Examination upon Turkish Lira Overnight Reference Interest Rate (TLREF)].
• Karthik, C. (2018). An Overview of Blockchain Technology.
• Kiktenko, E. O., Pozhar, N. O., Anufriev, M. N., Trushechkin, A., Yunusov, R. R., Kurochkin, Y. V., Fedorov, A. K. (2017). Quantum-secured Blockchain. Quantum Science and Technology, 3.
• Kostikov, E., Jílková, P., & Koťátková Stránská, P. (2019). Quantified Impact of Market Interest Rates on Commercial Banks’ Business Mix. Journal of International Studies.
• Kuznetsov, A., Oleshko, I., Tymchenko, V., Lisitsky, K., Rodinko, M., & Kolhatin, A. (2021). Performance Analysis of Cryptographic Hash Functions Suitable for Use in Blockchain. International Journal of Computer Network & Information Security, 13(2), 1-15.
• Long-zhen, F., & Wan-jun, L. (2008). The Factors that Affect Market Interest Rates in Chinese Bond Market. 2008 4th International Conference on Wireless Communications, Networking and Mobile Computing, 1-5.
• Pierro, M. D. (2017). What is the Blockchain? Computing in Science & Engineering, 19, 92-95.
• Rahardja, U., Hidayanto, A. N., Lutfiani, N., Febiani, D. A., & Aini, Q. (2021). Immutability of Distributed Hash Model on Blockchain Node Storage. Scientific Journal of Informatics, 8, 137-143.
• Reinhart, V., & Sack, B. P. (2002). The Changing Information Content of Market Interest Rates.
• Taylor, P. J., Dargahi, T., Dehghantanha, A., Parizi, R. M., & Choo, K.-K. R. (2020). A Systematic Literature Review of Blockchain Cyber Security. Digital Communications and Networks.
• Thornton, D. L. (1986). The Discount Rate and Market Interest Rates: Theory and Evidence. Canadian Parliamentary Review, 68, 5-21.
• Yılmaz, Y. (2021). Blokzincir Teknolojisi ve Kripto Paraların Finansal Piyasalar Üzerine Muhtemel Etkileri. Turkish Business Journal, 2(4), 1-26.
• Zhai, S., Yang, Y., Li, J., Qiu, C., & Zhao, J. (2019). Research on the Application of Cryptography on the Blockchain. Journal of Physics: Conference Series, 1168.
• Zheng, Q., Li, Y., Chen, P., & Dong, X. (2018). An Innovative IPFS-based Storage Model for Blockchain. Paper presented at the 2018 IEEE/WIC/ACM International Conference on Web Intelligence (WI).
• Терещенко, О., Стецько, М., Ткаченко, Н., & Бабяк, Н. (2021). Determinants of Interest Rates On Corporate Debt. Financial and Credit Activity Problems of Theory and Practice, 4(39), 264-275.