The Crypto-currency and Cyber-attack: Evidence from Causality Techniques
|International Journal of Engineering Trends and Technology (IJETT)||
|© 2020 by IJETT Journal|
|Year of Publication : 2020|
|Authors : Ersin Caglar, Dervis Kirikkaleli
|DOI : 10.14445/22315381/IJETT-V68I9P201|
MLA Style: Ersin Caglar, Dervis Kirikkaleli "The Crypto-currency and Cyber-attack: Evidence from Causality Techniques" International Journal of Engineering Trends and Technology 68.9(2020):1-4.
APA Style:Ersin Caglar, Dervis Kirikkaleli. The Crypto-currency and Cyber-attack: Evidence from Causality Techniques International Journal of Engineering Trends and Technology, 68(9),1-4.
With the rapid development of internet and information technology, crypto-currency has become accessible technology established on the blockchain. Based on popular demand, cryptocurrencies are available in the internet environment. Bitcoin is the most popular one among the crypto-currencies. Recently, the USA, Japan, and Canada have accepted Bitcoin as a method of payments in various business platforms as an alternative to currencies. With this opportunity, cryptocurrency and Bitcoin have gained a few disadvantages, such as insecurity and cyberattacks. This paper aim is to investigate if there exists a causal linkage between BC (Bitcoin price) and CA (cyber-attack) in the USA by using monthly data, covering the period 2010M07 to 2017M06. We employed traditional Granger causality and Toda- Yamamoto causality tests as a robust causality test. We also performed the newly-developed Fourier Toda-Yamamoto causality test to capture gradual developed structural changes. Our findings reveal that there is unilateral (independent) causality that runs from BC to CA. In other words, changes in BC significantly led to changes in CA in the USA.
 P. Bartusiak, "«Judicial Finding» of the Legal Nature of Cryptocurrency." Ehrlich`s Journal-???????????? ?????? 2, pp. 24-36, 2018.
 M. Conti, et al. "A survey on security and privacy issues of bitcoin." IEEE Communications Surveys & Tutorials, 20(4), pp. 3416-3452, 2018.
 D.A. Dickey, and W.A. Fuller, "Distribution of the estimators for autoregressive time series with a unit root." Journal of the American statistical association 74.366a, pp.427-431, 1979.
 G. Elliott, T.J. Rothenberg, and J.H. Stock, “Efficient tests for an autoregressive unit root (No. t0130)”. National Bureau of Economic Research, 64(8), pp. 13-36, 1996.
 W. Enders, and J. Lee. "A unit root test using a Fourier series to approximate smooth breaks". Oxford bulletin of Economics and Statistics 74.4, 574-599, 2012.
 C.W. Granger, "Investigating causal relations by econometric models and cross-spectral methods." Econometrica: Journal of the Econometric Society, 424-438, 1969.
 P.K. Hazlett, and W.J. Luther. "Is bitcoin money? And what that means." The Quarterly Review of Economics and Finance, 2019.
 ?. KIRBA?, “Blokzinciri teknolojisi ve yak?n gelecekteki uygulama alanlar?”. Mehmet Akif Ersoy Üniversitesi Fen Bilimleri Enstitüsü Dergisi, 9(1), 75-82, 2018.
 B. Kocaarslan, et al. "Dynamic correlations between BRIC and US stock markets: The asymmetric impact of volatility expectations in oil, gold and financial markets." Journal of Commodity Markets, 7, pp. 41-56, 2017.
 E. Kopp, L. Kaffenberger, and N. Jenkinson. “Cyber risk, market failures, and financial stability”. International Monetary Fund, 2017.
 J.H. Lee, “Rise of Anonymous Cryptocurrencies: Brief Introduction”. IEEE Consumer Electronics Magazine, 8(5), pp. 20-25, 2019.
 P. Mullan, “The digital currency challenge: Shaping online payment systems through US financial regulations”. Springer, 2014.
 S. Nakamoto, “Bitcoin: A peer-to-peer electronic cash system”. Manubot, 2019.
 S. Nakamoto, “Bitcoin: A peer-to-peer electronic cash system,” http://bitcoin. org/bitcoin. pdf. 2008.
 S. Nazlioglu, N.A. Gormus, and U. Soytas, “Oil prices and real estate investment trusts (REITs): Gradual-shift causality and volatility transmission analysis”. Energy Economics, 60, pp. 168-175, 2016.
 M. Raskin, and D. Yermack, “Digital currencies, decentralized ledgers and the future of central banking”. In Research Handbook on Central Banking. Edward Elgar Publishing, 2018.
 H. Sebastião, and P. Godinho, “Bitcoin futures: An effective tool for hedging cryptocurrencies”. Finance Research Letters, 2019.
 H.Y. Toda, and T. Yamamoto, “Statistical inference in vector autoregressions with possibly integrated processes”. Journal of econometrics, 66(1-2), pp. 225-250, 1995.
 D. Yermack, “Is Bitcoin a real currency? An economic appraisal”. In Handbook of digital currency (pp. 31-43). Academic Press, 2015.
 Sapirshtein, Y. Sompolinsky, and A. Zohar, “Optimal selfish mining strategies in bitcoin. International Conference on Financial Cryptography and Data Security”. Springer, Berlin, Heidelberg, pp. 515-532, 2016.
 M. Apostolaki, A. Zohar, and L. Vanbever, “Hijacking bitcoin: Routing attacks on cryptocurrencies”. In 2017 IEEE Symposium on Security and Privacy (SP). IEEE, pp. 375-392, 2017.
 J. Zhu, P. Liu, and L. He, “Mining information on Bitcoin network data”. In 2017 IEEE International Conference on Internet of Things (iThings) and IEEE Green Computing and Communications (GreenCom) and IEEE Cyber, Physical and Social Computing (CPSCom) and IEEE Smart Data (SmartData) (pp. 999-1003). IEEE, 2017.
 V. Vallois, and F.A. Guenane, “Bitcoin transaction: From the creation to validation, a protocol overview”. In 2017 1st Cyber Security in Networking Conference (CSNet) (pp. 1-7). IEEE, 2017.
 S. Ghimire, and H. Selvaraj, “A survey on bitcoin cryptocurrency and its mining”. In 2018 26th International Conference on Systems Engineering (ICSEng) (pp. 1-6). IEEE, 2018.
 F. Aiolli, M. Conti, A. Gangwal, and M. Polato, “Mind your wallet`s privacy: identifying Bitcoin wallet apps and user`s actions through network traffic analysis”. In Proceedings of the 34th ACM/SIGAPP Symposium on Applied Computing, pp. 1484-1491, 2019.
 Z. Li, et al. "A landscape of cryptocurrencies." 2019 IEEE International Conference on Blockchain and Cryptocurrency (ICBC). IEEE, 2019.
 S. Erfani, and M. Ahmadi, “Bitcoin Security Reference Model: An Implementation Platform”. In 2019 International Symposium on Signals, Circuits and Systems (ISSCS) (pp. 1-5). IEEE, 2019.
Crypto-currency, Cyber-attack, Blockchain, Bitcoin, Fourier Toda-Yamamoto causality, Granger causality