Is Bitcoin Really Untethered?

  title={Is Bitcoin Really Untethered?},
  author={John M. Griffin and Amin Shams},
This paper investigates whether Tether, a digital currency pegged to the U.S. dollar, influenced Bitcoin and other cryptocurrency prices during the 2017 boom. Using algorithms to analyze blockchain data, we find that purchases with Tether are timed following market downturns and result in sizable increases in Bitcoin prices. The flow is attributable to one entity, clusters below round prices, induces asymmetric autocorrelations in Bitcoin, and suggests insufficient Tether reserves before month… 

Bitcoin, Currencies, and Fragility

This discussion applies quantitative finance methods and economic arguments to cryptocurrencies in general and bitcoin in particular —as there are about 10, 000 cryptocurrencies, we focus (unless

Are Cryptocurrencies Currencies? Bitcoin as Legal Tender in El Salvador

This paper studies the potential of a cryptocurrency to become a medium of exchange. We use evidence from a natural experiment: In September 2021, El Salvador became the first country in the world to

Breaking the Stablecoin Buck: Measuring the Impact of Security Breach and Liquidation Shocks

—Cryptocurrencies have exploded in popularity, due in no small part to the rising value of Bitcoin. Yet much of their success relies upon stablecoins maintaining a consistent value pegged to fiat

When Early Adopters Learn From the Followers: The Cryptocurrency Return Predictability of GBTC Discount and Premium

It is shown that change in Grayscale Bitcoin Trust premium is the single most significant predictor of Bitcoin daily return, and that Bitcoin prices react with a delay to the information contained in the sentiment of traditional investors and investors who are constrained from directly holding Bitcoin.

The rise and fall of cryptocurrency coins and tokens

It is found that market variables such as the bitcoin price are not associated with the rate of introducing new coins, though they are positively associated with issuing new tokens, and that for both coins and tokens, market variables are positivelyassociated with resurrection.

Designing Stable Coins

This paper design several dual-class structures that are written on the ETH cryptocurrency and offer a fixed income crypto asset, a stable coin pegged to a traditional currency, and leveraged investment instruments and shows the robustness of the design.

Detecting and Quantifying Wash Trading on Decentralized Cryptocurrency Exchanges

A lower bound of accounts and trading structures are identified that meet the legal definitions of wash trading, discovering that they are responsible for a wash trading volume in equivalent of 159 million U.S. Dollars.

Diversifying with Cryptocurrencies during COVID-19

Literature suggests assets become more correlated during economic downturns. The current COVID-19 crisis provides an unprecedented opportunity to investigate this considerably further. Further,

The Microeconomics of Cryptocurrencies

This survey focuses on the microeconomics of crypto-currencies themselves, exploring what drives their supply, demand, trading price, and competition amongst them.



The Impact of Tether Grants on Bitcoin

In recent years, Tether issuances (or ‘grants’) have increased significantly, which correlated broadly with a significant rise in Bitcoin valuation. This paper examines the impact of cryptocurrency

A fistful of bitcoins: characterizing payments among men with no names

From this analysis, longitudinal changes in the Bitcoin market are characterized, the stresses these changes are placing on the system, and the challenges for those seeking to use Bitcoin for criminal or fraudulent purposes at scale are defined.

Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed Through Cryptocurrencies?

It is estimated that around $76 billion of illegal activity per year involves bitcoin (46% of bitcoin transactions), which is close to the scale of the US and European markets for illegal drugs.

Bitcoin: A Peer-to-Peer Electronic Cash System

This work proposes a solution to the double-spending problem using a peer-to-peer network, where the network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof- of-work.

Looting: The Economic Underworld of Bankruptcy for Profit

During the 1980s, a number of unusual financial crises occurred. In Chile, for example, the financial sector collapsed, leaving the government with responsibility for extensive foreign debts. In the

An Analysis of Anonymity in the Bitcoin System

  • F. ReidMartin Harrigan
  • Computer Science, Mathematics
    2011 IEEE Third Int'l Conference on Privacy, Security, Risk and Trust and 2011 IEEE Third Int'l Conference on Social Computing
  • 2011
It is shown that the two networks derived from Bitcoin's public transaction history have a non-trivial topological structure, provide complementary views of the Bit coin system and have implications for anonymity.

Corporate Governance and Blockchains

Blockchains represent a novel application of cryptography and information technology to ag-eold problems of financial record-keeping, and they may lead to far-reaching changes in corporate

Hedge Funds and the Technology Bubble

This paper documents that hedge funds did not exert a correcting force on stock prices during the technology bubble. Instead, they were heavily invested in technology stocks. This does not seem to be