China, Coal, Calamities and Cryptos
19 Pages Posted: 24 May 2021
Date Written: May 22, 2021
The growth of cryptocurrency mining in China, still heavily reliant on coal as a fuel for electricity generation, raises natural questions on the inter-relatedness of coal and crypto prices and volatilities. We investigate this, and the safety and thus supply stability of domestic Chinese coal mining. We find strong evidence of increased bitcoin volatility in the period post-Chinese coal mining accidents, with limited effects on global coal prices. Global coal price interrelationships do not respond to Chinese mining disaster-induced volatility but do respond to the largest Bitcoin-related price movements.
Keywords: Cryptocurrencies; Energy Usage; Coal Mining; Volatility; Extreme Value Modelling
JEL Classification: G10, G15, L72
Suggested Citation: Suggested Citation