2019 - 22nd Annual Steven Galovich Memorial Student Symposium

Presentation Title

Crypto Mania: Determining the Drivers of Financial Bubbles

Student Presenter(s) and Advisor

Trenton McCarthy, Lake Forest CollegeFollow

Department or Major

Economics, Business and Finance

Location

Lillard 048

Abstract

We have experienced similar financial bubbles in the past, including the South Sea bubble of the 1710s and the Dot-Com bubble of the 1990s, but each is nuanced and requires its own analysis. Controlling for Miner’s Revenue, Confirmation Times, Nasdaq Index Prices, Gold Prices, Bullish Investor Sentiment, and Bitcoin-Related Tweets, I examine the primary drivers of cryptocurrency prices from 2012 to 2018. In doing so, I identify the true nature of its price movements and conclude that cryptocurrency was indeed a bubble. Furthermore, using additional data, I offer possibilities for the future of blockchain technology.

Presentation Type

Individual Presentation

Start Date

4-9-2019 9:00 AM

End Date

4-9-2019 10:15 AM

Panel

The Measure of it All: Economic Interventions

Panel Moderator

Rob Lemke

Field of Study for Presentation

Finance

No downloadable materials are available for this event.

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Apr 9th, 9:00 AM Apr 9th, 10:15 AM

Crypto Mania: Determining the Drivers of Financial Bubbles

Lillard 048

We have experienced similar financial bubbles in the past, including the South Sea bubble of the 1710s and the Dot-Com bubble of the 1990s, but each is nuanced and requires its own analysis. Controlling for Miner’s Revenue, Confirmation Times, Nasdaq Index Prices, Gold Prices, Bullish Investor Sentiment, and Bitcoin-Related Tweets, I examine the primary drivers of cryptocurrency prices from 2012 to 2018. In doing so, I identify the true nature of its price movements and conclude that cryptocurrency was indeed a bubble. Furthermore, using additional data, I offer possibilities for the future of blockchain technology.