Seasonality and Interconnectivity within Cryptocurrencies - An Analysis on the Basis of Bitcoin, Litecoin and Namecoin

FinanceCom 2014, LNBIP 217, pp. 106-120, 2015

15 Pages Posted: 12 Jan 2015 Last revised: 17 Jun 2018

See all articles by Martin Haferkorn

Martin Haferkorn

Goethe University Frankfurt Faculty of Economics and Business Administration

Josue Manuel Quintana Diaz

Goethe-University Frankfurt am Main - Faculty of Economics and Business Administration; Goethe-University Frankfurt am Main

Date Written: December 12, 2014

Abstract

The market development of cryptocurrencies illustrates an institutional change how payments can be released and received without the need of any intermediary or trusted central party to clear virtual transactions. As academia focuses mostly on Bitcoin, the increased money demand within cryptocurrencies, its linkages, the wide range of possible channels to release and receive executed payments (payment patterns) and the wide range of different underlying motivations why cryptocurrencies are demanded to release payments (payment behavior) is still uncovered. One might assume that payment patterns and payment behavior converges in the future as soon as the experimenting phase would have cooled down. However we observe that Bitcoin shows a strong, Litecoin a weak and Namecoin no weekday seasonality. By analyzing observed number of payments directly (between these cryptocurrencies) and indirectly (via the Bitcoin exchange-rate) we find no relationship. We conclude on these findings that payment patterns and payment behaviors on the basis of cryptocurrencies Bitcoin, Litecoin and Namecoin continue to diverge.

Keywords: Bitcoin, Cryptocurrencies, Decentralized Transactions, Digital Currency, Litecoin, Namecoin, Payment Behavior, Virtual Money

Suggested Citation

Haferkorn, Martin and Quintana Diaz, Josue Manuel, Seasonality and Interconnectivity within Cryptocurrencies - An Analysis on the Basis of Bitcoin, Litecoin and Namecoin (December 12, 2014). FinanceCom 2014, LNBIP 217, pp. 106-120, 2015. Available at SSRN: https://ssrn.com/abstract=2548419

Martin Haferkorn (Contact Author)

Goethe University Frankfurt Faculty of Economics and Business Administration ( email )

Theodor-W.-Adorno-Platz 4
Frankfurt am Main, 60323
Germany

Josue Manuel Quintana Diaz

Goethe-University Frankfurt am Main - Faculty of Economics and Business Administration ( email )

Gr├╝neburgplatz 1
Frankfurt am Main, 60323
Germany

Goethe-University Frankfurt am Main ( email )

Gr├╝neburgplatz 1
Frankfurt am Main, 60323
Germany

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