Abstract:

This study aims to analyze the causal relationship between electricity consumption, price and transaction volume of Bitcoin, which is the most important asset of the crypto money market in terms of both market capitalization and transaction volume. In this study, the Bitcoin electricity consumption variable is represented by Cambridge Bitcoin Electricity Consumption Index. As the data set, 1446 days of data between February 2017 and February 2021 were used. The causality relationship between the variables is analyzed using the Hatemi-J (2012) and Toda Yamamoto (1995) tests. In addition, this study is a rare study that examines the relationship between electricity and volume, together with the work done by Schinckus et al. (2020). According to the results of this study, the decrease in Bitcoin electricity consumption causes a decrease in the Bitcoin price. However, a negative relationship is detected Bitcoin electricity consumption and Bitcoin trade volume in this study, like the study by Schinckus et al. (2020), the relationship was found to be very weak.

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