IDEAS home Printed from https://ideas.repec.org/a/spr/fininn/v10y2024i1d10.1186_s40854-023-00537-8.html
   My bibliography  Save this article

The rise and fall of cryptocurrencies: defining the economic and social values of blockchain technologies, assessing the opportunities, and defining the financial and cybersecurity risks of the Metaverse

Author

Listed:
  • Petar Radanliev

    (University of Oxford
    University of Oxford)

Abstract

This study examines blockchain technologies and their pivotal role in the evolving Metaverse, shedding light on topics such as how to invest in cryptocurrency, the mechanics behind crypto mining, and strategies to effectively buy and trade cryptocurrencies. While it contextualises the common queries of "why is crypto crashing?" and "why is crypto down?", the research transcends beyond the frequent market fluctuations to unravel how cryptocurrencies fundamentally work and the step-by-step process on how to create a cryptocurrency. Contrasting existing literature, this comprehensive investigation encompasses both the economic and cybersecurity risks inherent in the blockchain and fintech spheres. Through an interdisciplinary approach, the research transitions from the fundamental principles of fintech investment strategies to the overarching implications of blockchain within the Metaverse. Alongside exploring machine learning potentials in financial sectors and risk assessment methodologies, the study critically assesses whether developed or developing nations are poised to reap greater benefits from these technologies. Moreover, it probes into both enduring and dubious crypto projects, drawing a distinct line between genuine blockchain applications and Ponzi-like schemes. The conclusion resolutely affirms the staying power of blockchain technologies, underlined by a profound exploration of their intrinsic value and a reflective commentary by the author on the potential risks confronting individual investors.

Suggested Citation

  • Petar Radanliev, 2024. "The rise and fall of cryptocurrencies: defining the economic and social values of blockchain technologies, assessing the opportunities, and defining the financial and cybersecurity risks of the Metave," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-34, December.
    • Handle: RePEc:spr:fininn:v:10:y:2024:i:1:d:10.1186_s40854-023-00537-8
    DOI: 10.1186/s40854-023-00537-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40854-023-00537-8
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40854-023-00537-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sumah, Anthony Mwinkaara & Baatiema, Leonard & Abimbola, Seye, 2016. "The impacts of decentralisation on health-related equity: A systematic review of the evidence," Health Policy, Elsevier, vol. 120(10), pages 1183-1192.
    2. Caiado, Rodrigo Goyannes Gusmão & Scavarda, Luiz Felipe & Gavião, Luiz Octávio & Ivson, Paulo & Nascimento, Daniel Luiz de Mattos & Garza-Reyes, Jose Arturo, 2021. "A fuzzy rule-based industry 4.0 maturity model for operations and supply chain management," International Journal of Production Economics, Elsevier, vol. 231(C).
    3. Deb Crawford & Justin Sherman, 2018. "Gaps in United States federal government IoT security and privacy policies," Journal of Cyber Policy, Taylor & Francis Journals, vol. 3(2), pages 187-200, May.
    4. Peterson K. Ozili, 2022. "Decentralised Finance and Cryptocurrency Activity in Africa," Contemporary Studies in Economic and Financial Analysis, in: The New Digital Era: Digitalisation, Emerging Risks and Opportunities, volume 109, pages 3-11, Emerald Group Publishing Limited.
    5. Jayaram, Jayanth & Tan, Keah-Choon, 2010. "Supply chain integration with third-party logistics providers," International Journal of Production Economics, Elsevier, vol. 125(2), pages 262-271, June.
    6. Vijay Mohan, 2022. "Automated market makers and decentralized exchanges: a DeFi primer," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-48, December.
    7. Liao, Shu-Hsien & Hu, Da-Chian & Ding, Li-Wen, 2017. "Assessing the influence of supply chain collaboration value innovation, supply chain capability and competitive advantage in Taiwan's networking communication industry," International Journal of Production Economics, Elsevier, vol. 191(C), pages 143-153.
    8. Yavin, On & Reardon, Aj, 2021. "What digital banks can learn from decentralised finance," Journal of Digital Banking, Henry Stewart Publications, vol. 5(3), pages 255-263, December.
    9. Bouri, Elie & Vo, Xuan Vinh & Saeed, Tareq, 2021. "Return equicorrelation in the cryptocurrency market: Analysis and determinants," Finance Research Letters, Elsevier, vol. 38(C).
    10. Breidbach, Christoph F. & Tana, Silviana, 2021. "Betting on Bitcoin: How social collectives shape cryptocurrency markets," Journal of Business Research, Elsevier, vol. 122(C), pages 311-320.
    11. Kaiyue Zheng & Laura A. Albert, 2019. "A Robust Approach for Mitigating Risks in Cyber Supply Chains," Risk Analysis, John Wiley & Sons, vol. 39(9), pages 2076-2092, September.
    12. Amani Aldahiri & Bashair Alrashed & Walayat Hussain, 2021. "Trends in Using IoT with Machine Learning in Health Prediction System," Forecasting, MDPI, vol. 3(1), pages 1-26, March.
    13. Gang Kou & Özlem Olgu Akdeniz & Hasan Dinçer & Serhat Yüksel, 2021. "Fintech investments in European banks: a hybrid IT2 fuzzy multidimensional decision-making approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-28, December.
    14. Ayana T Aspembitova & Ling Feng & Lock Yue Chew, 2021. "Behavioral structure of users in cryptocurrency market," PLOS ONE, Public Library of Science, vol. 16(1), pages 1-19, January.
    15. Claus Dierksmeier & Peter Seele, 2018. "Cryptocurrencies and Business Ethics," Journal of Business Ethics, Springer, vol. 152(1), pages 1-14, September.
    16. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    17. Fan Fang & Carmine Ventre & Michail Basios & Leslie Kanthan & David Martinez-Rego & Fan Wu & Lingbo Li, 2022. "Cryptocurrency trading: a comprehensive survey," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-59, December.
    18. Virinder Sharma & Victor Orindi & Ced Hesse & James Pattison & Simon Anderson, 2014. "Supporting local climate adaptation planning and implementation through local governance and decentralised finance provision," Development in Practice, Taylor & Francis Journals, vol. 24(4), pages 579-590, May.
    19. Katya Delak & Tarik Hansen, 2022. "Security Considerations for a Central Bank Digital Currency," FEDS Notes 2022-02-03-1, Board of Governors of the Federal Reserve System (U.S.).
    20. Schnetzler, Matthias J. & Sennheiser, Andreas & Schonsleben, Paul, 2007. "A decomposition-based approach for the development of a supply chain strategy," International Journal of Production Economics, Elsevier, vol. 105(1), pages 21-42, January.
    21. Mohamed Ben-Daya & Elkafi Hassini & Zied Bahroun, 2019. "Internet of things and supply chain management: a literature review," International Journal of Production Research, Taylor & Francis Journals, vol. 57(15-16), pages 4719-4742, August.
    22. Min Xu & Xingtong Chen & Gang Kou, 2019. "A systematic review of blockchain," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-14, December.
    23. Helder Sebastião & Pedro Godinho, 2021. "Forecasting and trading cryptocurrencies with machine learning under changing market conditions," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-30, December.
    24. Zhang, Huanhuan & Kou, Gang & Peng, Yi, 2019. "Soft consensus cost models for group decision making and economic interpretations," European Journal of Operational Research, Elsevier, vol. 277(3), pages 964-980.
    25. Heckmann, Iris & Comes, Tina & Nickel, Stefan, 2015. "A critical review on supply chain risk – Definition, measure and modeling," Omega, Elsevier, vol. 52(C), pages 119-132.
    26. Nikolopoulos, Konstantinos & Punia, Sushil & Schäfers, Andreas & Tsinopoulos, Christos & Vasilakis, Chrysovalantis, 2021. "Forecasting and planning during a pandemic: COVID-19 growth rates, supply chain disruptions, and governmental decisions," European Journal of Operational Research, Elsevier, vol. 290(1), pages 99-115.
    27. Alexey Mikhaylov & Hasan Dinçer & Serhat Yüksel, 2023. "Analysis of financial development and open innovation oriented fintech potential for emerging economies using an integrated decision-making approach of MF-X-DMA and golden cut bipolar q-ROFSs," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-34, December.
    28. Manthou, Vicky & Vlachopoulou, Maro & Folinas, Dimitris, 2004. "Virtual e-Chain (VeC) model for supply chain collaboration," International Journal of Production Economics, Elsevier, vol. 87(3), pages 241-250, February.
    29. Fan Fang & Carmine Ventre & Michail Basios & Leslie Kanthan & Lingbo Li & David Martinez-Regoband & Fan Wu, 2020. "Cryptocurrency Trading: A Comprehensive Survey," Papers 2003.11352, arXiv.org, revised Jan 2022.
    30. Tina Linden & Tina Shirazi, 2023. "Markets in crypto-assets regulation: Does it provide legal certainty and increase adoption of crypto-assets?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-30, December.
    31. Minli Yu & Fu-Sheng Tsai & Hui Jin & Hejie Zhang, 2022. "Digital finance and renewable energy consumption: evidence from China," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-19, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petar Radanliev, 2023. "The Rise and Fall of Cryptocurrencies: Defining the Economic and Social Values of Blockchain Technologies, assessing the Opportunities, and defining the Financial and Cybersecurity Risks of the Metave," Papers 2309.12322, arXiv.org.
    2. Petar, Radanliev, 2023. "The Rise and Fall of Cryptocurrencies: Defining the Economic and Social Values of Blockchain Technologies, assessing the Opportunities, and defining the Financial and Cybersecurity Risks of the Metave," MPRA Paper 118249, University Library of Munich, Germany.
    3. Husam Rjoub & Tomiwa Sunday Adebayo & Dervis Kirikkaleli, 2023. "Blockchain technology-based FinTech banking sector involvement using adaptive neuro-fuzzy-based K-nearest neighbors algorithm," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-23, December.
    4. Laurens Swinkels, 2023. "Empirical evidence on the ownership and liquidity of real estate tokens," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-29, December.
    5. Tina Linden & Tina Shirazi, 2023. "Markets in crypto-assets regulation: Does it provide legal certainty and increase adoption of crypto-assets?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-30, December.
    6. Nuray Tosunoğlu & Hilal Abacı & Gizem Ateş & Neslihan Saygılı Akkaya, 2023. "Artificial neural network analysis of the day of the week anomaly in cryptocurrencies," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-24, December.
    7. Alessio Brini & Jimmie Lenz, 2024. "A comparison of cryptocurrency volatility-benchmarking new and mature asset classes," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-38, December.
    8. Fatih Ecer & Tolga Murat & Hasan Dinçer & Serhat Yüksel, 2024. "A fuzzy BWM and MARCOS integrated framework with Heronian function for evaluating cryptocurrency exchanges: a case study of Türkiye," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-29, December.
    9. Fabian Mayer & Peter Bofinger, 2024. "Cryptocurrency competition: empirical testing of Hayek’s vision of private monies," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-46, December.
    10. Yi-Hsiang Lu & Ching-Chiang Yeh & Yu-Mei Kuo, 2024. "Exploring the critical factors affecting the adoption of blockchain: Taiwan’s banking industry," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-25, December.
    11. Yu Song & Bo Chen & Xin-Yi Wang, 2023. "Cryptocurrency technology revolution: are Bitcoin prices and terrorist attacks related?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-20, December.
    12. Alessio Brini & Jimmie Lenz, 2024. "A Comparison of Cryptocurrency Volatility-benchmarking New and Mature Asset Classes," Papers 2404.04962, arXiv.org.
    13. Jules Clement Mba, 2024. "Assessing portfolio vulnerability to systemic risk: a vine copula and APARCH-DCC approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-36, December.
    14. Wujun Lv & Tao Pang & Xiaobao Xia & Jingzhou Yan, 2023. "Dynamic portfolio choice with uncertain rare-events risk in stock and cryptocurrency markets," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-28, December.
    15. Walid Mensi & Mariya Gubareva & Hee-Un Ko & Xuan Vinh Vo & Sang Hoon Kang, 2023. "Tail spillover effects between cryptocurrencies and uncertainty in the gold, oil, and stock markets," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-27, December.
    16. Riccardo Blasis & Luca Galati & Alexander Webb & Robert I. Webb, 2023. "Intelligent design: stablecoins (in)stability and collateral during market turbulence," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-23, December.
    17. Waqas Hanif & Hee-Un Ko & Linh Pham & Sang Hoon Kang, 2023. "Dynamic connectedness and network in the high moments of cryptocurrency, stock, and commodity markets," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-40, December.
    18. Danilo Bazzanella & Andrea Gangemi, 2023. "Bitcoin: a new proof-of-work system with reduced variance," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-14, December.
    19. Mingbo Zheng & Gen-Fu Feng & Xinxin Zhao & Chun-Ping Chang, 2023. "The transaction behavior of cryptocurrency and electricity consumption," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-18, December.
    20. Zhiqi Feng & Yongli Li & Xiaochen Ma, 2023. "Blockchain-oriented approach for detecting cyber-attack transactions," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-38, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:fininn:v:10:y:2024:i:1:d:10.1186_s40854-023-00537-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.