The proliferation of cryptocurrencies, led by Bitcoin and followed by several altcoins, and the rapid development of the cryptocurrency markets has ushered in a new era of decentralized digital transactions and revolutionized the financial landscape. While cryptocurrencies have shown tremendous potential for disruption and financial innovation, their implications extend beyond financial markets. Recent studies highlight that the energy consumption of cryptocurrencies rivals that of small countries, leading to substantial carbon emissions and resource depletion, raising concerns over their environmental impact and the long-term economic stability, as climate change-related risks can transform into financial vulnerabilities. Thus, a broader evaluation of the implications of cryptocurrencies on financial, economic, and environmental systems is relevant due to their impact on those systems.
The interdisciplinary field of econophysics, which merges principles from economics and physics, has emerged as a tool for analyzing and understanding complex financial systems (e.g., stock markets, cryptocurrency markets, among others) allowing a deeper understanding of their behavior.
Applying these methodologies to analyze the environmental implications of cryptocurrencies within the context of financial markets and economic systems is a relatively new research area, which can be useful in the identification of potential pathways to mitigate systemic risks and ensure financial, economic, and environmental sustainable development.
This Research Topic aims to apply econophysics approaches and measures to analyze and evaluate the complex relationships between cryptocurrencies, financial markets, and environmental sustainability, to promote environmental conservation, the sustainable development of the cryptocurrency markets, and to design new policies for cryptocurrencies, aiming to harmonize technological progress with environmental world sustainability.
Thus, applying econophysics approaches, this Research Topic has as its main goals to:
i. Evaluate how the adoption and trading of cryptocurrencies influence financial markets (e.g., including volatility spillovers, risk exposure, market efficiency, etc).
ii. Evaluate the potential systemic risks posed by integrating cryptocurrencies into traditional financial markets (e.g., considering scenarios of market crashes, extreme events, etc.).
iii. Analyze cryptocurrency traders' behavioral aspects (employing insights from behavioral finance and economics) and their impact on market stability.
iv. Quantify the energy consumption, carbon emissions, and ecological footprint attributed to different cryptocurrencies.
v. Evaluate the effects of cryptocurrency mining on energy resources, electronic waste generation, and potential ecological disruptions.
vi. Model market dynamics and analyze mining practices to assess the repercussions of cryptocurrency development on financial and economic stability and environmental sustainability.
vii. Analyze the environmental impacts of cryptocurrency activities within the context of financial markets.
viii. Identify strategies and propose evidence-based policy recommendations to balance the growth of cryptocurrencies in financial markets with environmental sustainability, fostering innovation while mitigating the negative environmental impact of cryptocurrencies, while addressing regulatory challenges.
ix. Assess the macroeconomic impact of cryptocurrencies on economic indicators, considering potential spillover effects.
Contributors to this Research Topic are invited to explore, applying econophysics approaches, the following themes (but not limited to), including:
i. Financial market dynamics, specifically the cryptocurrency markets
ii. Quantification of cryptocurrencies' environmental impact
iii. Economic and environmental sustainability
Types of manuscripts: Original Research; Methods; Hypothesis and Theory; Technology and Code.
Keywords:
Complex systems, cryptocurrencies, cryptocurrency markets, econophysics, environmental impact, environmental sustainability, economic dynamics, financial markets stability
Important Note:
All contributions to this Research Topic must be within the scope of the section and journal to which they are submitted, as defined in their mission statements. Frontiers reserves the right to guide an out-of-scope manuscript to a more suitable section or journal at any stage of peer review.
The proliferation of cryptocurrencies, led by Bitcoin and followed by several altcoins, and the rapid development of the cryptocurrency markets has ushered in a new era of decentralized digital transactions and revolutionized the financial landscape. While cryptocurrencies have shown tremendous potential for disruption and financial innovation, their implications extend beyond financial markets. Recent studies highlight that the energy consumption of cryptocurrencies rivals that of small countries, leading to substantial carbon emissions and resource depletion, raising concerns over their environmental impact and the long-term economic stability, as climate change-related risks can transform into financial vulnerabilities. Thus, a broader evaluation of the implications of cryptocurrencies on financial, economic, and environmental systems is relevant due to their impact on those systems.
The interdisciplinary field of econophysics, which merges principles from economics and physics, has emerged as a tool for analyzing and understanding complex financial systems (e.g., stock markets, cryptocurrency markets, among others) allowing a deeper understanding of their behavior.
Applying these methodologies to analyze the environmental implications of cryptocurrencies within the context of financial markets and economic systems is a relatively new research area, which can be useful in the identification of potential pathways to mitigate systemic risks and ensure financial, economic, and environmental sustainable development.
This Research Topic aims to apply econophysics approaches and measures to analyze and evaluate the complex relationships between cryptocurrencies, financial markets, and environmental sustainability, to promote environmental conservation, the sustainable development of the cryptocurrency markets, and to design new policies for cryptocurrencies, aiming to harmonize technological progress with environmental world sustainability.
Thus, applying econophysics approaches, this Research Topic has as its main goals to:
i. Evaluate how the adoption and trading of cryptocurrencies influence financial markets (e.g., including volatility spillovers, risk exposure, market efficiency, etc).
ii. Evaluate the potential systemic risks posed by integrating cryptocurrencies into traditional financial markets (e.g., considering scenarios of market crashes, extreme events, etc.).
iii. Analyze cryptocurrency traders' behavioral aspects (employing insights from behavioral finance and economics) and their impact on market stability.
iv. Quantify the energy consumption, carbon emissions, and ecological footprint attributed to different cryptocurrencies.
v. Evaluate the effects of cryptocurrency mining on energy resources, electronic waste generation, and potential ecological disruptions.
vi. Model market dynamics and analyze mining practices to assess the repercussions of cryptocurrency development on financial and economic stability and environmental sustainability.
vii. Analyze the environmental impacts of cryptocurrency activities within the context of financial markets.
viii. Identify strategies and propose evidence-based policy recommendations to balance the growth of cryptocurrencies in financial markets with environmental sustainability, fostering innovation while mitigating the negative environmental impact of cryptocurrencies, while addressing regulatory challenges.
ix. Assess the macroeconomic impact of cryptocurrencies on economic indicators, considering potential spillover effects.
Contributors to this Research Topic are invited to explore, applying econophysics approaches, the following themes (but not limited to), including:
i. Financial market dynamics, specifically the cryptocurrency markets
ii. Quantification of cryptocurrencies' environmental impact
iii. Economic and environmental sustainability
Types of manuscripts: Original Research; Methods; Hypothesis and Theory; Technology and Code.
Keywords:
Complex systems, cryptocurrencies, cryptocurrency markets, econophysics, environmental impact, environmental sustainability, economic dynamics, financial markets stability
Important Note:
All contributions to this Research Topic must be within the scope of the section and journal to which they are submitted, as defined in their mission statements. Frontiers reserves the right to guide an out-of-scope manuscript to a more suitable section or journal at any stage of peer review.