The Financial Market Effects of Cryptocurrency Energy Usage

13 Pages Posted: 30 Jun 2019

See all articles by Shaen Corbet

Shaen Corbet

Dublin City University ; University of Waikato - Management School

Brian M. Lucey

Trinity Business School, Trinity College Dublin; University of Sydney Business School; Ho Chi Minh City University of Economics and Finance; Jiangxi University of Finance and Economics

Larisa Yarovaya

University of Southampton - Southampton Business School

Date Written: June 29, 2019

Abstract

Annual electricity consumption for cryptocurrency mining is growing yearly, driven by the increasing difficulty in mining. Total carbon production from mining now likely exceeds that generated by the entire nation of Portugal. This is a feature, not a bug, in cryptocurrencies. This paper investigates how Bitcoin's price volatility and the underlying dynamics of cryptocurrency's mining characteristics affect the energy markets, utilities companies, and green ETFs. The results show that continued cryptocurrency energy-usage impacts the performance of energy sector, which emphasises the importance of further assessment of environmental impacts of cryptocurrency growth.

Keywords: Cryptocurrency, mining, electricity, energy

JEL Classification: G00

Suggested Citation

Corbet, Shaen and Lucey, Brian M. and Yarovaya, Larisa, The Financial Market Effects of Cryptocurrency Energy Usage (June 29, 2019). Available at SSRN: https://ssrn.com/abstract=3412194 or http://dx.doi.org/10.2139/ssrn.3412194

Shaen Corbet

Dublin City University ( email )

Dublin 9
Ireland

University of Waikato - Management School ( email )

Hamilton
New Zealand

Brian M. Lucey (Contact Author)

Trinity Business School, Trinity College Dublin ( email )

The Sutherland Centre, Level 6, Arts Building
Dublin 2
Ireland
+353 1 608 1552 (Phone)
+353 1 679 9503 (Fax)

University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia

Ho Chi Minh City University of Economics and Finance ( email )

59C Nguyen D├Čnh Chieu
6th Ward, District 3
Ho Chi Minh City, Ho Chi Minh 70000
Vietnam

Jiangxi University of Finance and Economics ( email )

South Lushan Road
Nanchang, Jiangxi 330013
China

Larisa Yarovaya

University of Southampton - Southampton Business School ( email )

Highfield
University Road
Southampton, SO17 1BJ
United Kingdom

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