Research Article
Year 2023,
Volume: 14 Issue: 2, 651 - 663, 30.12.2023
Abstract
Cryptocurrencies, which started with Bitcoin, which was released differently from traditional payment and investment tools, have large transaction volumes today. In addition to the many economic benefits of cryptocurrencies, which are used both as a payment tool and as a financial investment tool, high energy consumption and a heavy carbon footprint come with them. With the owner of the automaker Tesla stating that he is worried about the increasing use of fossil fuels in Bitcoin mining and cutting its support for Bitcoin, the price of Bitcoin has fallen sharply, while green cryptocurrencies have reached historical peaks. This situation reminded the investors that they should handle risky investments carefully and also highlighted the importance of green investment tools. Understanding the relationship between green cryptocurrencies and other assets is essential for investors looking to expand their portfolios and seize emerging opportunities. In this direction, the study examined whether green cryptocurrencies are a safe haven against non-green cryptocurrencies in the period of January 2022–July 2023. In the analysis, DCC-GARCH analysis, risk, and return analyses were performed for safe haven. According to the analysis' findings, among cryptocurrencies, green cryptocurrencies are most likely to be a safe haven for investors.
References
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- Baur D. G. & Lucey, B. M. (2010). Is gold a hedge or a safe haven? An analysis of stocks, bonds and gold?, Financ. Rev., 45 (2), 217-229.
- Bouri E. Iqbal, N. & Klein. (2022). Climate policy uncertainty and the price dynamics of green and brown energy stocks. Finance Research Letters, 47 (B), 102740.
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- Di Febo, E., Ortolano, A., Foglia, M., Leone, M. & Angelini, E. (2021). From bitcoin to carbon allowances: An asymmetric extreme risk Spillover. Journal of Environmental Management, 298, 113384.
- Digiconomist. (2022). Bitcoin less “green” than ever before, https://digiconomist.net/bitcoin-less-green-than-ever-before/, 15.06.2023.
- Energyfi. (2023). https://coinmarketcap.com/tr/currencies/energyfi/ , 13.10.2023.
- Engle, R. (2002). Dynamic conditional correlation: A simple class of multivariate generalized autoregressive conditional heteroskedasticity models. Journal of Business & Economic Statistics, 20 (3), 339-350.
- Hayes, A.S. (2017). Cryptocurrency value formation: An empirical study leading to a cost of production model for valuing bitcoin, Telemat Inform. 34, 1308–1321.
- Investing. (2023). Bitcoin [Data set]. Access: https://www.investing.com/crypto/bitcoin , 17.07.2023.
- Jana, R. K., Ghosh, I., Das, D. & Dutta, A. (2021). Determinants of electronic waste generation in bitcoin network: Evidence from the machine learning approach. Technological Forecasting and Social Change, 173, 121101. https://doi.org/10.1016/j.techfore.2021.121101
- Köhler, S. & Pizzol, M. (2019). Life cycle assessment of bitcoin mining. Environmental Science & Technology, 53 (23), 13598-13606. https://doi.org/10.1021/acs.est.9b05687.
- Kuloğlu, E. & Öncel, M. (2015). Green finance application and applicability in Turkey. Gazi University Journal of Social Sciences, 2 (2) , 2-19.
- Kumar, S. (2021). Review of geothermal energy as an alternate energy source for bitcoin mining. Journal of Economics and Economic Education Research, 23 (1), 1-12.
- Krause, M.J. & Tolaymat, T. (2018). Quantification of energy and carbon costs for mining cryptocurrencies, Nat. Sustain, 1, 711–718.
- McCook, H. (2015). An order-of-magnitude estimate of the relative sustainability of the bitcoin network. Available online: https://Bitcoin.fr/public/divers/docs/Estimation_de_la_durabilite_et_du_cout_du_reseau_Bitcoin.pdf, 07.08.2023.
- Miśkiewicz, R., Matan, K. & Karnowski, J. (2022). The role of crypto trading in the economy, renewable energy consumption and ecological degradation. Energies, 15 (10), 3805. https://doi.org/10.3390/en15103805
- Mohsin, M., Naseem, S., Zia‐ur‐Rehman, M., Baig, S. A. & Salamat, S. (2020). The crypto‐trade volume, gdp, energy use, and environmental degradation sustainability: An analysis of the top 20 crypto‐trader countries. International Journal of Finance & Economics, 25 (1), 651-667. https://doi.org/10.1002/ijfe.2442
- Mora, C., Rollins, R. L., Taladay, K., Kantar, M. B., Chock, M. K., Shimada, M. & Franklin, E. C. (2018). Bitcoin emissions alone could push global warming above 2c. Nature Climate Change, 8 (11), 931-933.
- Naeem, M. A., & Karim, S. (2021). Tail dependence between bitcoin and green financial assets, Economics Letters, 208, 110068.
- O'Dwyer, K. J. & Malone, D. (2013). Bitcoin mining and its energy footprint, proceedings of the ırish signals & systems conference 2014 and 2014 china–ıreland ınternational conference on ınformation and communications technologies (ıssc 2014/cııct 2014), IET, Limerick, Ireland, 26–27, 280–285.
- Pham, L., Karim, S., Naeem, M. A. & Long, C. (2022). A tale of two tails among carbon prices, green and non-green cryptocurrencies. International Review of Financial Analysis, 82, 102139. https://doi.org/10.1016/j.irfa.2022.102139
- Ren, B. & Lucey B. (2022). A clean, green haven?-examining the relationship between clean energy, clean and dirty cryptocurrencies. Energy Economics, 109, 105951.
- Rhodes, C. J. (2016). The 2015 Paris climate change conference: Cop21. Science Progress, 99 (1), 97-104.
- Roeck, M., & Drennen, T. (2022). Life cycle assessment of behind-the-meter bitcoin mining at us power plant. The International Journal of Life Cycle Assessment, 27 (3), 355-365.
- Robbins, A. (2016). How to understand the results of the climate change summit: Conference of parties21 (cop21) paris 2015. Journal of Public Health Policy, 37 (2), 129-132.
- Schinckus C., Nguyen C. P. & Ling, F. C. H. (2020). Crypto-currencies trading and energy consumption. International Journal of Energy Economics and Policy, 10 (3), 355. https://doi.org/10.32179/ijeep.9258
- TUIK, (2023). Access: https://data.tuik.gov.tr/Bulten/Index?p=Energy-Accounts-202149751#:~:text=Enerji% 20art%C4%B1klar%C4%B1n%C4%B1n%20pay%C4%B1%20%36%2C8,%259%2C9%20olarak%20hesapland%C4%B1.&text=Ekonomik%20faaliyetler%2C%202021%20y%C4%B1l%C4%B1nda%20fiziksel,%258%2C8%20olarak%20hesapland%C4%B1, 10.06.2023
- Vries, A. (2019). Renewable energy will not solve bitcoin’s sustainability problem, Joule, 3 (4), 893-898.
Year 2023,
Volume: 14 Issue: 2, 651 - 663, 30.12.2023
Abstract
Geleneksel ödeme ve yatırım araçlarından farklı olarak piyasaya sürülen Bitcoin ile başlayan kripto paralar günümüzde büyük işlem hacimlerine sahiptir. Hem ödeme aracı hem de finansal yatırım aracı olarak kullanılan kripto paraların bir çok ekonomik faydasına ek olarak yüksek enerji tüketimi ve ağır karbon ayak izi de beraberinde gelmektedir. Otomobil üreticisi Tesla’nın sahibinin Bitcoin madenciliğinde fosil yakıt kullanımının giderek artmasından endişe duyduğunu ve Bitcoin’e vereceği desteği kestiğini belirtmesiyle birlikte Bitcoin fiyatında görülen keskin düşüşe karşılık yeşil kripto paralarda görülen hızlı artış, yatırımcıları daha riskli yatırımları dikkatli bir şekilde ele alması gerektiğini hatırlatmıştır. Yeşil kripto paralar ile diğer varlıklar arasındaki ilişkiyi anlamanın, portföylerini genişletmeyi ve çıkan fırsatları yakalamayı amaçlayan yatırımcılar için oldukça önemlidir. Bu doğrultuda çalışmada Ocak 2022-Temmuz 2023 döneminde yeşil kripto paraların, yeşil olmayan kripto paralar karşısında güvenli bölge olup olmadığı incelenmiştir. Analizde güvenli bölge analizi için DCC-GARCH, risk ve getiri analizi yapılmıştır. Analiz bulguları, kripto paralar arasında yeşil kripto paraların güvenli sığınak olma olasılıklarının yüksek olduğunu göstermektedir.
Ethical Statement
Araştırmada ikincil veriler kullanıldığından dolayı etik kurul izni gerekmemektedir.
References
- Arfaoui, N., Naeem, M. E., Boubaker, S., Mirza, N. & Karim, S. (2023). Interdependence of clean energy and green markets with cryptocurrencies. Energy Economics, 120, 106584.
- Bevand, M. (2018). Electricity consumption of bitcoin: A market-based and technical analysis. Access: http://blog.zorinaq.com/bitcoin-electricityconsumption/, 22.06.2023.
- Baur D. G. & Lucey, B. M. (2010). Is gold a hedge or a safe haven? An analysis of stocks, bonds and gold?, Financ. Rev., 45 (2), 217-229.
- Bouri E. Iqbal, N. & Klein. (2022). Climate policy uncertainty and the price dynamics of green and brown energy stocks. Finance Research Letters, 47 (B), 102740.
- Capie, F., Mills, T.C. & Wood, G. (2005). Gold as a hedge against the dolar, international financial markets. Institutions and Money, 15, 343-352.
- Coinmarket. (2023). https://coinmarketcap.com/tr/view/pow/ , 15.10.2023.
- Coinmarketcap.(2023). https://coinmarketcap.com/charts/ , 13.10.2023.
- Corbet, S., Lucey, B. & Yarovaya, L. (2021). Bitcoin-energy markets interrelationships- new evidence. Resources Policy, 70, 101916. https://doi.org/10.1016/j.resourpol.2020.101916.
- Cryptoclimate, (2023). https://cryptoclimate.org/accord/, 13.10.2023.
- Di Febo, E., Ortolano, A., Foglia, M., Leone, M. & Angelini, E. (2021). From bitcoin to carbon allowances: An asymmetric extreme risk Spillover. Journal of Environmental Management, 298, 113384.
- Digiconomist. (2022). Bitcoin less “green” than ever before, https://digiconomist.net/bitcoin-less-green-than-ever-before/, 15.06.2023.
- Energyfi. (2023). https://coinmarketcap.com/tr/currencies/energyfi/ , 13.10.2023.
- Engle, R. (2002). Dynamic conditional correlation: A simple class of multivariate generalized autoregressive conditional heteroskedasticity models. Journal of Business & Economic Statistics, 20 (3), 339-350.
- Hayes, A.S. (2017). Cryptocurrency value formation: An empirical study leading to a cost of production model for valuing bitcoin, Telemat Inform. 34, 1308–1321.
- Investing. (2023). Bitcoin [Data set]. Access: https://www.investing.com/crypto/bitcoin , 17.07.2023.
- Jana, R. K., Ghosh, I., Das, D. & Dutta, A. (2021). Determinants of electronic waste generation in bitcoin network: Evidence from the machine learning approach. Technological Forecasting and Social Change, 173, 121101. https://doi.org/10.1016/j.techfore.2021.121101
- Köhler, S. & Pizzol, M. (2019). Life cycle assessment of bitcoin mining. Environmental Science & Technology, 53 (23), 13598-13606. https://doi.org/10.1021/acs.est.9b05687.
- Kuloğlu, E. & Öncel, M. (2015). Green finance application and applicability in Turkey. Gazi University Journal of Social Sciences, 2 (2) , 2-19.
- Kumar, S. (2021). Review of geothermal energy as an alternate energy source for bitcoin mining. Journal of Economics and Economic Education Research, 23 (1), 1-12.
- Krause, M.J. & Tolaymat, T. (2018). Quantification of energy and carbon costs for mining cryptocurrencies, Nat. Sustain, 1, 711–718.
- McCook, H. (2015). An order-of-magnitude estimate of the relative sustainability of the bitcoin network. Available online: https://Bitcoin.fr/public/divers/docs/Estimation_de_la_durabilite_et_du_cout_du_reseau_Bitcoin.pdf, 07.08.2023.
- Miśkiewicz, R., Matan, K. & Karnowski, J. (2022). The role of crypto trading in the economy, renewable energy consumption and ecological degradation. Energies, 15 (10), 3805. https://doi.org/10.3390/en15103805
- Mohsin, M., Naseem, S., Zia‐ur‐Rehman, M., Baig, S. A. & Salamat, S. (2020). The crypto‐trade volume, gdp, energy use, and environmental degradation sustainability: An analysis of the top 20 crypto‐trader countries. International Journal of Finance & Economics, 25 (1), 651-667. https://doi.org/10.1002/ijfe.2442
- Mora, C., Rollins, R. L., Taladay, K., Kantar, M. B., Chock, M. K., Shimada, M. & Franklin, E. C. (2018). Bitcoin emissions alone could push global warming above 2c. Nature Climate Change, 8 (11), 931-933.
- Naeem, M. A., & Karim, S. (2021). Tail dependence between bitcoin and green financial assets, Economics Letters, 208, 110068.
- O'Dwyer, K. J. & Malone, D. (2013). Bitcoin mining and its energy footprint, proceedings of the ırish signals & systems conference 2014 and 2014 china–ıreland ınternational conference on ınformation and communications technologies (ıssc 2014/cııct 2014), IET, Limerick, Ireland, 26–27, 280–285.
- Pham, L., Karim, S., Naeem, M. A. & Long, C. (2022). A tale of two tails among carbon prices, green and non-green cryptocurrencies. International Review of Financial Analysis, 82, 102139. https://doi.org/10.1016/j.irfa.2022.102139
- Ren, B. & Lucey B. (2022). A clean, green haven?-examining the relationship between clean energy, clean and dirty cryptocurrencies. Energy Economics, 109, 105951.
- Rhodes, C. J. (2016). The 2015 Paris climate change conference: Cop21. Science Progress, 99 (1), 97-104.
- Roeck, M., & Drennen, T. (2022). Life cycle assessment of behind-the-meter bitcoin mining at us power plant. The International Journal of Life Cycle Assessment, 27 (3), 355-365.
- Robbins, A. (2016). How to understand the results of the climate change summit: Conference of parties21 (cop21) paris 2015. Journal of Public Health Policy, 37 (2), 129-132.
- Schinckus C., Nguyen C. P. & Ling, F. C. H. (2020). Crypto-currencies trading and energy consumption. International Journal of Energy Economics and Policy, 10 (3), 355. https://doi.org/10.32179/ijeep.9258
- TUIK, (2023). Access: https://data.tuik.gov.tr/Bulten/Index?p=Energy-Accounts-202149751#:~:text=Enerji% 20art%C4%B1klar%C4%B1n%C4%B1n%20pay%C4%B1%20%36%2C8,%259%2C9%20olarak%20hesapland%C4%B1.&text=Ekonomik%20faaliyetler%2C%202021%20y%C4%B1l%C4%B1nda%20fiziksel,%258%2C8%20olarak%20hesapland%C4%B1, 10.06.2023
- Vries, A. (2019). Renewable energy will not solve bitcoin’s sustainability problem, Joule, 3 (4), 893-898.
There are 34 citations in total.
Details
| Primary Language | English |
|---|---|
| Subjects | Econometrics (Other) |
| Journal Section | Makaleler |
| Authors | |
| Publication Date | December 30, 2023 |
| Submission Date | September 1, 2023 |
| Published in Issue | Year 2023 Volume: 14 Issue: 2 |
