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Examining the Volatility of Conventional Cryptocurrencies and Sustainable Cryptocurrency during Covid-19: Based on Energy Consumption

Author

Listed:
  • V. Anandhabalaji

    (Research Scholar, Bharathidasan School of Management, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India,)

  • Manivannan Babu

    (Research Scholar, Bharathidasan School of Management, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India,)

  • J. Gayathri

    (Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India,)

  • J. Sathya

    (Sri Sarada College for Women, India,)

  • G. Indhumathi

    (Mother Teresa Women’s University, India,)

  • R. Brintha

    (Research Scholar, Bharathidasan School of Management, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India,)

  • Justin Nelson Michael

    (School of management, Kristu Jayanti College, Autonomous, Bengalur, India.)

Abstract

The present study proposes to investigate the influence of the covid-19, on the adjusted closing price of the digital currency based on energy consumption during the process of mining. The study employed the secondary data analysis of top ten market capitalization of cryptocurrencies with the combination of high energy consume mechanism (proof of work) and low energy consume mechanism (proof of stake). Statistical tools like Descriptive analysis,Augmented Dickey-Fuller (ADF) test, ARCH, and GARCH models were used in the study. The present study finds that the prices of cryptocurrencies were highly volatile. This study could assist investors towards better understanding of the dynamics of the cryptocurrency market based on energy consumption which helps them to make more effective decisions, on investing cryptocurrencies with a scientific approach.

Suggested Citation

  • V. Anandhabalaji & Manivannan Babu & J. Gayathri & J. Sathya & G. Indhumathi & R. Brintha & Justin Nelson Michael, 2023. "Examining the Volatility of Conventional Cryptocurrencies and Sustainable Cryptocurrency during Covid-19: Based on Energy Consumption," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 344-352, November.
    • Handle: RePEc:eco:journ2:2023-06-36
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    References listed on IDEAS

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    More about this item

    Keywords

    Cryptocurrency; Volatility; Covid-19; Sustainability; GARCH;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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