Disorder unleashes panic in bitcoin dynamics
The behaviour of Bitcoin owners is reflected in the structure and the number of bitcoin transactions encoded in the Blockchain. Likewise, the behaviour of Bitcoin traders is reflected in the formation of bullish and bearish trends in the crypto market. In light of these observations, we wonder if hu...
| Main Authors: | , , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
IOP Publishing
2023-01-01
|
| Series: | Journal of Physics: Complexity |
| Subjects: | |
| Online Access: | https://doi.org/10.1088/2632-072X/ad00f7 |
| _version_ | 1797658915647782912 |
|---|---|
| author | Marco Alberto Javarone Gabriele Di Antonio Gianni Valerio Vinci Raffaele Cristodaro Claudio J Tessone Luciano Pietronero |
| author_facet | Marco Alberto Javarone Gabriele Di Antonio Gianni Valerio Vinci Raffaele Cristodaro Claudio J Tessone Luciano Pietronero |
| author_sort | Marco Alberto Javarone |
| collection | DOAJ |
| description | The behaviour of Bitcoin owners is reflected in the structure and the number of bitcoin transactions encoded in the Blockchain. Likewise, the behaviour of Bitcoin traders is reflected in the formation of bullish and bearish trends in the crypto market. In light of these observations, we wonder if human behaviour underlies some relationship between the Blockchain and the crypto market. To address this question, we map the Blockchain to a spin-lattice problem, whose configurations form ordered and disordered patterns, representing the behaviour of Bitcoin owners. This novel approach allows us to obtain time series suitable to detect a causal relationship between the dynamics of the Blockchain and market trends of the Bitcoin and to find that disordered patterns in the Blockchain precede Bitcoin panic selling. Our results suggest that human behaviour underlying Blockchain evolution and the crypto market brings out a fascinating connection between disorder and panic in Bitcoin dynamics. |
| first_indexed | 2024-03-11T18:06:18Z |
| format | Article |
| id | doaj.art-8dbcd3545bfb49eca4cda63cc49f3349 |
| institution | Directory Open Access Journal |
| issn | 2632-072X |
| language | English |
| last_indexed | 2024-03-11T18:06:18Z |
| publishDate | 2023-01-01 |
| publisher | IOP Publishing |
| record_format | Article |
| series | Journal of Physics: Complexity |
| spelling | doaj.art-8dbcd3545bfb49eca4cda63cc49f33492023-10-17T06:05:27ZengIOP PublishingJournal of Physics: Complexity2632-072X2023-01-014404500210.1088/2632-072X/ad00f7Disorder unleashes panic in bitcoin dynamicsMarco Alberto Javarone0https://orcid.org/0000-0003-0514-9544Gabriele Di Antonio1Gianni Valerio Vinci2Raffaele Cristodaro3Claudio J Tessone4Luciano Pietronero5Dipartimento di Fisica, Università di Bari , Bari, Italy; Centro Ricerche Enrico Fermi , Rome, Italy; University College London—Centre for Blockchain Technologies , London, United KingdomCentro Ricerche Enrico Fermi , Rome, Italy; Istituto Superiore di Sanità , Rome, Italy; Università degli Studi Roma Tre , Rome, ItalyIstituto Superiore di Sanità , Rome, Italy; Università Roma Tor Vergata , Rome, ItalyBlockchain and Distributed Ledger Technologies, Institute of Informatics, University of Zurich , Zürich, SwitzerlandBlockchain and Distributed Ledger Technologies, Institute of Informatics, University of Zurich , Zürich, Switzerland; UZH Blockchain Center, University of Zurich , Zürich, SwitzerlandCentro Ricerche Enrico Fermi , Rome, ItalyThe behaviour of Bitcoin owners is reflected in the structure and the number of bitcoin transactions encoded in the Blockchain. Likewise, the behaviour of Bitcoin traders is reflected in the formation of bullish and bearish trends in the crypto market. In light of these observations, we wonder if human behaviour underlies some relationship between the Blockchain and the crypto market. To address this question, we map the Blockchain to a spin-lattice problem, whose configurations form ordered and disordered patterns, representing the behaviour of Bitcoin owners. This novel approach allows us to obtain time series suitable to detect a causal relationship between the dynamics of the Blockchain and market trends of the Bitcoin and to find that disordered patterns in the Blockchain precede Bitcoin panic selling. Our results suggest that human behaviour underlying Blockchain evolution and the crypto market brings out a fascinating connection between disorder and panic in Bitcoin dynamics.https://doi.org/10.1088/2632-072X/ad00f7disorderbitcoinpanic sellingblockchain |
| spellingShingle | Marco Alberto Javarone Gabriele Di Antonio Gianni Valerio Vinci Raffaele Cristodaro Claudio J Tessone Luciano Pietronero Disorder unleashes panic in bitcoin dynamics Journal of Physics: Complexity disorder bitcoin panic selling blockchain |
| title | Disorder unleashes panic in bitcoin dynamics |
| title_full | Disorder unleashes panic in bitcoin dynamics |
| title_fullStr | Disorder unleashes panic in bitcoin dynamics |
| title_full_unstemmed | Disorder unleashes panic in bitcoin dynamics |
| title_short | Disorder unleashes panic in bitcoin dynamics |
| title_sort | disorder unleashes panic in bitcoin dynamics |
| topic | disorder bitcoin panic selling blockchain |
| url | https://doi.org/10.1088/2632-072X/ad00f7 |
| work_keys_str_mv | AT marcoalbertojavarone disorderunleashespanicinbitcoindynamics AT gabrielediantonio disorderunleashespanicinbitcoindynamics AT giannivaleriovinci disorderunleashespanicinbitcoindynamics AT raffaelecristodaro disorderunleashespanicinbitcoindynamics AT claudiojtessone disorderunleashespanicinbitcoindynamics AT lucianopietronero disorderunleashespanicinbitcoindynamics |